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: ProShares UltraPro Nasdaq Biotech

    Obtain information about an ETF offerings that provides leveraged exposure to the biotechnology industry, the ProShares UltraPro Nasdaq Biotech Fund.
  2. Mutual Funds & ETFs

    ETF Analysis: iShares MSCI Europe Financials

    Learn about the iShares MSCI Europe Financials fund, which invests in numerous European financial industries, such as banks, insurance and real estate.
  3. Mutual Funds & ETFs

    ETF Analysis: SPDR S&P Insurance

    Learn about the SPDR S&P Insurance exchange-traded fund, which follows the S&P Insurance Select Industry Index by investing in equities of U.S. insurers.
  4. Mutual Funds & ETFs

    ETF Analysis: SPDR S&P Emerging Markets Small Cap

    Learn about the SPDR S&P Emerging Markets Small Cap exchange-traded fund, which invests in small-cap firms traded at the emerging equity markets.
  5. Mutual Funds & ETFs

    ETF Analysis: ETFS Physical Platinum

    Learn about the physical platinum ETF. Platinum embarked on a bull market from 2001 to 2011, climbing to record prices along with other precious metals.
  6. Mutual Funds & ETFs

    ETF Analysis: iShares MSCI Turkey

    Learn about the iShares MSCI Turkey exchange-traded fund, which invests in a wide variety of companies' equities traded on Turkish exchanges.
  7. Mutual Funds & ETFs

    ETF Analysis: PowerShares S&P 500 Downside Hedged

    Find out about the PowerShares S&P 500 Downside Hedged ETF, and learn detailed information about characteristics, suitability and recommendations of it.
  8. Mutual Funds & ETFs

    ETF Analysis: Guggenheim Enhanced Short Dur

    Find out about the Guggenheim Enhanced Short Duration ETF, and learn detailed information about this fund that focuses on fixed-income securities.
  9. Mutual Funds & ETFs

    ETF Analysis: iShares US Oil&Gas Explor&Prodtn

    Learn about the iShares U.S. Oil & Gas Exploration & Production ETF, which provides an efficient way to invest in the exploration and production sector.
  10. Mutual Funds & ETFs

    ETF Analysis: iShares Morningstar Small-Cap Value

    Find out about the Shares Morningstar Small-Cap Value ETF, and learn detailed information about this exchange-traded fund that focuses on small-cap equities.
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. 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 >>
  6. 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 >>

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!