EU Morning Report - Risk appetite wanes

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By NikolasX | November 16, 2012 7:28 PM EST

Easy Forex


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!


. Pivot Preference1 Sentiment2
. 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
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
Currency Time (GMT) Event Forecast
. 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%


Movers Shakers
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.


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