EU Morning Report - CPI set the pace in todays trading

The euro (EUR) was sold versus the US dollar (USD) in yesterday’s trading sessions. The single currency came under stress after Jean-Claude Junker, leader of European finance Ministers expressed the opinion that the euro, currently at 1.33, is trading “dangerously high”. Looking ahead, the pair is set to see some heavy trading later in the day as both the European and American Consumer price Indices (CPI) are set to come out. A higher CPI in the United states could indicate a stop in Quantitative Easing (QE), shorter than expected, thus helping the dollar move to higher ground.

§ The GER30 (DAX) has been moving above its Moving Average since early December 2012 and looks set to take advantage of the positive news released around the euro (EUR) as Germany is Europe’s biggest exporter. Currently the index trades at 7700 and has sufficient support at 7565.

§ West Texas Intermediate (OIL) has found resistance at 94.60 and a correction is possible in today’s trading. Looking ahead, this afternoon, the US will release its Crude Oil Inventories. A rise, more than expected, could indicate oversupply.

§ An interesting pair to watch could be the euro (EUR) versus the Australian dollar (AUD). The pair has been on roller coaster ride since December, while it failed to reach a higher high when it stopped around 1.270, it now looks unwilling to move below 1.258.

Stay in tune throughout the day with foreign exchange bullets!

Outlook	.	Pivot	Preference1	Sentiment2
.	EURUSD	1.3335	LONG @ 1.3335	33% of deals buy EUR
.	USDJPY	88.85	SHORT @ 88.85	47% of deals buy USD
.	GBPUSD	1.6105	SHORT @ 1.6105	44% of deals buy GBP
.	AUDUSD	1.0575	SHORT @ 1.0575	22% of deals buy AUD
.	GOLD	1663	LONG @ 1663	57% of deals buy GOLD
.	OIL	94.45	LONG @ 94.45	36% of deals buy OIL

1 data generated by Trading Central™, 2 data obtained from easy-forex Inside Viewer™

Calendar	Currency	Time (GMT)	Event	Forecast
.	EUR	10:00	Consumer Price Index (y/y)	2.2%
.	USD	13:30	Core Consumer Price Index (y/y)	0.2%
.	OIL	15:30	US Crude Oil Inventories	2.0 M

Movers Shakers
EURCHF	The euro (EUR) has been moving higher against the Swiss franc (CHF) since last week amid reports that Swiss investors are looking to invest more of their money overseas. The franc has reached levels it last visited in October 2011 but found resistance yesterday at 1.24. Looking at the technicals, we should expect a correction by the end of the week.

Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. In no way is it a recommendation by easy-forex® for you to engage in any trade. The information provided is based on data generated by third party investment research providers. easy-forex® does not assume any liability as to the accuracy of such information. This information shall be used for reference only and it is not binding on easy-forex®. This is not an advertisement or a recommendation in engaging / binding you in any forex transactions.

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EU Morning Report - CPI set the pace in todays trading

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