DailyFX.com -

Talking Points:

  • Euro May Extend Losses on a Downgrade of June’s German CPI Print
  • British Pound Unlikely to Find Volatility in Construction Output Data
  • Canadian Dollar Narrowly Outperformed in Quiet Asian Trading Hours

The final revision of June’s German CPI data headlines the economic calendar in European hours. The headline year-on-year inflation rate is expected to be confirmed at 1 percent, in line with flash estimates. In overall trend terms, German price-growth figures have tended to underperform relative to consensus forecasts since July 2013. That hints at the risk of a downside surprise, an outcome that – if realized – would likely weigh on the Euro amid swelling stimulus expansion bets. We are short EUR/USD.

Separately, May’s UK Construction Output figures are likely to pass with little fanfare. The year-on-year growth rate is expected to hit 5.6 percent, marking an advance from the 4.6 percent outcome recorded in the prior month. The BOE has argued it prefers to use macro-prudential tools rather than interest rate hikes to deal with the now worrisome effervescence of the UK property market, meaning an upbeat outcome is unlikely to spark policy tightening bets and thus offer little support to the British Pound.

The major currencies were little-changed against the US Dollar in overnight trade as a lull in major event risk left markets in consolidation mode. The Canadian Dollar narrowly outperformed but a discrete catalyst for the move was not readily apparently. On balance, the advance may have owed to little more than inertia, reflecting continuation of the advance initiated in yesterday’s North American session.

New to FX? START HERE!

Asia Session

GMT

CCY

EVENT

ACT

EXP

PREV

22:45

NZD

Food Prices (MoM) (JUN)

1.4%

-

0.6%

1:30

AUD

Home Loans (MAY)

0.0%

-0.5%

-0.2%

1:30

AUD

Investment Lending (MAY)

-0.9%

-

1.3%

1:30

AUD

Value of Loans (MoM) (MAY)

-0.7%

-

1.3%

3:00

NZD

Non Resident Bond Holdings (JUN)

64.2%

-

64.6%

European Session

GMT

CCY

EVENT

EXP

PREV

IMPACT

6:00

EUR

German Wholesale Price Index (MoM) (JUN)

-

-0.1%

Low

6:00

EUR

German Wholesale Price Index (YoY) (JUN)

-

-0.9%

Low

6:00

EUR

German CPI (MoM) (JUN F)

0.3%

0.3%

Medium

6:00

EUR

German CPI (YoY) (JUN F)

1.0%

1.0%

Medium

6:00

EUR

German CPI - EU Harmonised (MoM) (JUN F)

0.4%

0.4%

Medium

6:00

EUR

German CPI - EU Harmonised (YoY) (JUN F)

1.0%

1.0%

Medium

8:30

GBP

Construction Output s.a. (MoM) (MAY)

0.9%

1.2%

Low

8:30

GBP

Construction Output s.a. (YoY) (MAY)

5.6%

4.6%

Low

Critical Levels

CCY

Supp 3

Supp 2

Supp 1

Pivot Point

Res 1

Res 2

Res 3

EURUSD

1.3492

1.3554

1.3582

1.3616

1.3644

1.3678

1.3740

GBPUSD

1.7009

1.7072

1.7102

1.7135

1.7165

1.7198

1.7261

Related Articles
  1. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  2. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  3. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  4. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  5. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  6. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  7. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  8. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  9. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  10. Investing Basics

    The Risks Of Buying Bitcoin

    Virtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
RELATED TERMS
  1. No results found.

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!