EU Morning Report - Eurozone GDP out today
By NikolasX | November 15, 2012 7:56 PM EST
The euro (EUR) is strengthening against most of its major counterparts, as Germany released its 3rd quarter Gross Domestic Product (GDP) at 0.2%, in line with expectations. The eurozone’s GDP is due at 10:00 GMT and any deviation from the anticipated -0.2% contraction, will affect the single currency. Yesterday, the FOMC minutes revealed that the 3rd round of quantitative easing (QE3) may intensify, as there are members within the committee that believe more assets purchases will be required once the Operation Twists ends. Another point of attention for investors today is US unemployment claims due at 13:30 GMT.
§ The Australian dollar (AUD) is falling across the board this morning, and the same is true for the Japanese yen (JPY) and the British pound (GBP).
§ OIL keeps trading above the 85 US dollars (USD) a barrel level early in the US session. Please keep in mind that Light Crude and Brent Oil expire today, ahead of the Crude Oil Inventories release and this is likely to move the commodities wildly.
§ Gold (XAU) is in need of a catalyst that will push the precious metal higher or lower versus the US dollar (USD). Gold is currently trading below 1725 US dollars an ounce, having started the week yesterday at 1734.39.
Stay in tune throughout the day with foreign exchange bullets!
|.||EURUSD||1.2705||LONG @ 1.2715||55% of deals buy EUR|
|.||USDJPY||80.30||LONG @ 80.30||38% of deals buy USD|
|.||GBPUSD||1.5880||SHORT @ 1.5880||62% of deals buy GBP|
|.||AUDUSD||1.0395||SHORT @ 1.0381||58% of deals buy AUD|
|.||GOLD||1717||LONG @ 1720||67% of deals buy GOLD|
|.||OIL||84.90||LONG @ 84.90||69% of deals buy OIL|
|.||GBP||09:30||Retail Sales m/m in October||0.0%|
|.||EUR||10:00||Gross Domestic Product (GDP) flash q/q in 3rd quarter||-0.2%|
|.||USD||13:30||Consumer Price Index (CPI) m/m in October||0.1%|
The euro (EUR) broke through the short-term resistance level found around 11.3720, and recorded a 3-week high at 11.3870 against the South African rand (ZAR) this morning. Minor retracements should be expected, however, the previous resistance is now expected to act as a support and an excellent risk/reward entry point for long positions.