EU Morning Report - Risk appetite wanes
By NikolasX | November 16, 2012 7:28 PM EST
The euro (EUR) is weakening against most of its major counterparts, as eurozone’s 3rd quarter Gross Domestic Product (GDP) came out at 0.2%, in line with expectations. On Wednesday, the Federal Open Market Committee (FOMC) minutes from their latest meeting, revealed that the 3rd round of quantitative easing (QE3) may intensify, as there are members within the group that believe more asset purchases will be required once the Operation Twists ends. The US Unemployment Claims came out higher than expected as the Consumer Price Index (CPI) print was 0.1% as anticipated.
§ The Australian dollar (AUD) is trying to rebound this morning after yesterday’s risk-off selling, and the same is true for the Japanese yen (JPY) and the British pound (GBP).
§ OIL is trading above the 85 US dollars (USD) a barrel level early in the EU session for yet another day. The Crude Oil Inventories release, yesterday, pushed the precious commodity price down to 85.09 from 86.73.
§ Gold (XAU) plunged versus the US dollar (USD) from 1725.77 as low as 1704.65 following the announcement of the US labour data. The precious metal managed to partially recover and is currently trading around 1715 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|
|.||EUR||09:00||Current account in September||9.2 bil|
|.||USD||14:15||Industrial Output m/m in October||0.2%|
|.||USD||14:15||Capacity Utilisation in October||78.3%|
The euro (EUR) broke through the short-term resistance level found around 11.3720, and recorded a 5-week high at 11.4739 against the South African rand (ZAR) yesterday. The pair has since been in retracements and the previous resistance area is now expected to act as a support and an excellent risk/reward entry point for long positions.