- German Unemployment Change (000’s) (Jul): 2K Actual Vs -5K Estimated; 12K Prior.
- German Unemployment Rate (Jul): 6.7% Actual Vs 6.7% Estimated; 6.7% Prior.
- EUR/USD Breaks Below 1.3200 After the Release; Looking Ahead German CPI and Revised 2Q US GDP.
Want to trade with proprietary strategies developed by FXCM? Find out how here.
The German Unemployment Change for the month of August came in at 2,000 versus 12,000 in July (revised higher). This missed market expectations calling for a fall in unemployment by 5,000. Despite an increase in unemployment, August German Unemployment Rate came in at 6.7 percent. This was consistent with five consecutive months and met with market forecasts of 6.7 percent. The aforementioned data is important and should be taken into consideration by forex traders as further deterioration in unemployment may keep the European Central Bank (ECB)on the sidelines throughout the remainder of 2014 says DailyFX Currency Analyst David Song.
Ahead of the data, EUR/USD managed to push above the critical 1.3200 level to trade at 1.3203. Immediately after the release, the Euro took a dive but remained relatively muted against the US Dollar amid breaking below the psychologically important 1.3200 mark.
Focusing ahead, EUR/USD will be fed by the release of August’s German Consumer Price Index (CPI) data and the revised second-quarter US GDP report, which is due at 12:00 GMT and 12:30 GMT respectively, later today. The 2Q US GDP report is expected, by the market, to be revised down to 3.9 percent from an initial reading of 4.0 percent. DailyFX Currency Strategist Ilya Spivak says softer-than-expected print may undermine the speculation of a sooner-than-later interest rate hike by the Federal Reserve, which bodes-ill for the US Dollar. Finally, Eurozone CPI numbers are set to take center stage on Friday and its outcome may provide traders with more information of the timing and the possibility for further easing by the ECB.
For those forex traders that endorse technical analysis when trading, Ilya Spivak mentions near-term support to rest at 1.3151 (76.4% Fib Ret.) and near-term resistance at 1.3232 (14.6% Fib Ret.). He is short EUR/USD at 1.3644 in line with his long-term fundamental outlook. Meanwhile according to DailyFX Speculative Sentiment Index, the ratio of long to short positions in the EUR/USD stands at 1.79 as 64 percent of traders are long.
EUR/USD 5 Minute Chart
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
New to FX? START HERE!
Edward Hyon, DailyFX Research Team
Keep up to date on event risk with DailyFX Calendar
Investing NewsChina’s forex reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan
ForexAmid 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.
Forex FundamentalsAs 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.
EconomicsOne 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 ...
ForexBreaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
InvestingAccess 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.
EconomicsSouth Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Forex EducationPeer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
ForexHere is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
EntrepreneurshipA brief overview of the top apps that help forex traders with on time information, charts and more.