Forex: EUR/USD softening after EMU data
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EUR/USD
FXstreet.com (Barcelona) - The improved sentiment seen on the European opening pushed the EURUSD to as high as 1.2985, where it gave in to profit taking. The pair is now softening from its previous stable position at 1.2965/70 after the release of EMU industrial production at 09:00 GMT.
The Eurozone industrial production s.a. (MoM) rose +0.6% in August like it did in July, surprising market analysts that were expecting a -0.4% contraction. The annualized w.d.a. figure contracted further from -2.8% (revised down from 2.3%) to -2.9%, but much better than the -4.2% consensus.
The Italian CPI inflation report for September came in line with consensus estimates. The month change of the headline figure was quite different from the EU normalized data, 0.0% vs +2.1%. The annualized data was relatively similar, rising to +3.2% (from +3.0%) and to +3.4% (from +3.3%), respectively. The French current account deficit widened from ¬-2.5B to ¬-4B in August.
Having bounced from the 200-day moving average, at 1.2825, the rebound has managed to neutralize the technical indicators, but Commerzbank analysts expect an eventual drop: "We continue to look for rallies to remain tepid and remain capped by 1.3072", wrote analyst Karen Jones.
The Eurozone industrial production s.a. (MoM) rose +0.6% in August like it did in July, surprising market analysts that were expecting a -0.4% contraction. The annualized w.d.a. figure contracted further from -2.8% (revised down from 2.3%) to -2.9%, but much better than the -4.2% consensus.
The Italian CPI inflation report for September came in line with consensus estimates. The month change of the headline figure was quite different from the EU normalized data, 0.0% vs +2.1%. The annualized data was relatively similar, rising to +3.2% (from +3.0%) and to +3.4% (from +3.3%), respectively. The French current account deficit widened from ¬-2.5B to ¬-4B in August.
Having bounced from the 200-day moving average, at 1.2825, the rebound has managed to neutralize the technical indicators, but Commerzbank analysts expect an eventual drop: "We continue to look for rallies to remain tepid and remain capped by 1.3072", wrote analyst Karen Jones.
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