EU Morning Report - CPI set the pace in todays trading

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By NikolasX | January 16, 2013 7:56 PM EST

Easy Forex


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!

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


Movers Shakers
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.


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