DailyFX.com -

Talking Points:

  • Euro May Correct Higher if Augusts’ German CPI Data Tops Expectations
  • US Dollar Slumped on Profit-Taking in Asia, 2Q GDP Revision Eyed Ahead
  • See Economic Releases Directly on Your Charts with the DailyFX News App

The preliminary set of Augusts’ German CPI figures headlines the economic calendar in European hours. The baseline year-on-year inflation rate is expected to remain unchanged at 0.8 percent, matching a four-year low recorded in May.

In broad trend terms, German price-growth data has cautiously improved relative to consensus forecasts over recent months, hinting at the possibility for an upside surprise. Such an outcome may pour cold water on speculation about an imminent expansion of ECB stimulus, sending the Euro higher. The chart setup likewise hints the single currency is preparing to correct higher.

The US Dollar broadly underperformed in overnight trade, sliding as much as 0.2 percent on average against its leading counterparts. The selloff may reflect profit-taking in preparation for the upcoming release of revised second-quarter US GDP figures. The report is expected to see the annualized quarter-on-quarter growth figure revised down to 3.9 percent from the initially-reported 4.0 percent result.

A softer-than-expected print may undermine bets on a relatively sooner move to raise interest rates after the Federal Reserve wraps up QE3 asset purchases in October. Such a possibility after the benchmark unit hit a six-month high earlier this week makes a degree of profit-taking seem reasonable. Indeed, technical positioning warns a near-term top may be in place.

New to FX? START HERE!

Asia Session

GMT

CCY

EVENT

ACT

EXP

PREV

1:00

AUD

HIA New Home Sales (MoM) (JUL)

-5.7%

-

1.2%

1:30

CNY

Industrial Profits (YoY) (JUL)

13.5%

-

17.9%

1:30

AUD

Private Capital Expenditure (2Q)

1.1%

-0.9%

-2.5%

European Session

GMT

CCY

EVENT

EXP

PREV

IMPACT

7:55

EUR

German Unemployment Rate s.a. (AUG)

6.7%

6.7%

Medium

7:55

EUR

German Unemployment Change (AUG)

-5K

-12K

Medium

8:00

EUR

Eurozone M3 s.a. (YoY) (JUL)

1.5%

1.5%

Low

8:00

EUR

Eurozone M3 s.a. (3M) (JUL)

1.3%

1.1%

Low

8:30

GBP

Lloyds Business Barometer (AUG)

52

Low

9:00

EUR

Eurozone Industrial Confidence (AUG)

-4.5

-3.8

Low

9:00

EUR

Eurozone Consumer Confidence (AUG F)

-10

-10

Low

9:00

EUR

Eurozone Economic Confidence (AUG)

101.5

102.2

Low

9:00

EUR

Eurozone Services Confidence (AUG)

3.5

3.6

Low

9:00

EUR

Eurozone Business Climate Indicator (AUG)

-

0.17

Low

10:00

GBP

CBI Reported Sales (AUG)

27

21

Low

12:00

EUR

German CPI (MoM) (AUG P)

0.0%

0.3%

High

12:00

EUR

German CPI (YoY) (AUG P)

0.8%

0.8%

High

12:00

EUR

German CPI - EU Harmonised (MoM) (AUG P)

0.0%

0.3%

Medium

12:00

EUR

German CPI - EU Harmonised (YoY) (AUG P)

0.8%

0.8%

Medium

Critical Levels

CCY

Supp 3

Supp 2

Supp 1

Pivot Point

Res 1

Res 2

Res 3

EURUSD

1.3071

1.3128

1.3161

1.3185

1.3218

1.3242

1.3299

GBPUSD

1.6437

1.6505

1.6541

1.6573

1.6609

1.6641

1.6709

Related Articles
  1. Mutual Funds & ETFs

    ETF Analysis: iShares 10-20 Year Treasury Bond

    Learn about the iShares 1-20 Year Treasury Bond ETF and its holdings, and understand why investors may be better served to look at other bond funds.
  2. Mutual Funds & ETFs

    ETF Analysis: iShares Global Telecom

    Learn about the iShares Global Telecom exchange-traded fund, which invests in U.S. and foreign telecommunication companies with high dividend yields.
  3. Chart Advisor

    Gold Struggles to Climb Higher and May Fall Soon

    Traders will be watching the price of gold over the coming weeks. We'll take a look at how a couple major moving averages are suggesting that the next move could be lower.
  4. Mutual Funds & ETFs

    ETF Analysis: United States Brent Oil Fund

    Learn more about the United States Brent Oil exchange-traded fund, the characteristics of the fund and the suitability and recommendations of it.
  5. Mutual Funds & ETFs

    ETF Analysis: ProShares Ultra Bloomberg Crude Oil

    Find out more about the ProShares Ultra Bloomberg Crude Oil ETF, the characteristics of UCO and the suitability and recommendations of UCO for investors.
  6. Mutual Funds & ETFs

    ETF Analysis: iShares MSCI Hong Kong

    Learn about the iShares MSCI Hong Kong fund, which invests in various equities of companies listed on the Hong Kong Stock Exchange.
  7. Mutual Funds & ETFs

    ETF Analysis: Vanguard Small-Cap Growth

    Take a close look at the Vanguard Small-Cap Growth ETF, which focuses on domestic small-cap equities with a fundamental growth strategy.
  8. Mutual Funds & ETFs

    ETF Analysis: First Trust Dorsey Wright Focus 5

    Take a closer look at the First Trust Dorsey Wright Focus 5 ETF, a unique and innovative fund of funds based on momentum and relative strength.
  9. Mutual Funds & ETFs

    ETF Analysis: iShares National AMT-Free Muni Bond

    Take an in-depth look at the iShares National AMT-Free Municipal Bond ETF, a highly diverse and very popular muni bond fund.
  10. Mutual Funds & ETFs

    Top 3 Switzerland ETFs

    Explore detailed analysis and information of the top three Swiss exchange-traded funds that offer exposure to the Swiss equities market.
RELATED TERMS
  1. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  2. Exchange-Traded Mutual Funds (ETMF)

    Investopedia explains the definition of exchange-traded mutual ...
  3. Lion economies

    A nickname given to Africa's growing economies.
  4. Factor Investing

    An investment strategy in which securities are chosen based on ...
  5. Reverse Gold ETF

    Exchange traded funds that are designed to trade in a direction ...
  6. Investment Fund

    A supply of capital belonging to numerous investors that is used ...
RELATED FAQS
  1. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>
  2. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  3. What is the difference between passive and active asset management?

    Asset management utilizes two main investment strategies that can be used to generate returns: active asset management and ... Read Full Answer >>
  4. Is there a situation in which wash trading is legal?

    Wash trading, the intentional practice of manipulating a stock's activity level to deceive other investors, is not a legal ... Read Full Answer >>
  5. Are there leveraged ETFs that follow the retail sector?

    There are many exchange-traded funds (ETFs) that track the retail sector or elements of the retail sector, and some of those ... Read Full Answer >>
  6. What are some of the most popular ETFs that track the retail sector?

    Some of the most popular exchange-traded funds (ETFs) that track the retail sector include the iShares S&P Global Consumer ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!