Tools for Traders Top Movers | Heat Map | Pivot Point | Pivot Meters | Action Bias | Volatility Charts Action Insight Mid-Day Report: Euro Reverses as Germany Outlook Worsened Considerably, Sterling Pare Gains after CPI Miss Euro and Sterling trade notably lower today as economic data missed expectation. Sterling remains relatively firm and stays as the strongest major currency for the week. The CPI miss was just 0.1% yoy, and Brexit transition deal should still give BoE policy makers a confidence boost. Euro, on the other hand, is much more troubled as deterioration in German ZEW was quite considerable. The trades mildly generally firmer today as markets await FOMC rate hike tomorrow. Before that, eyes will be on whether G20 leaders would come up with something against protectionism and trade war in their joint communique. RBA Minutes Reiterated The Impacts Of Low Wage Growth On Inflation Aussie remains under pressure although the RBA minutes contained little surprise. The minutes signaled that policymakers were encouraged by recent economic growth. However, subdued wage growth and elevated household debt have suggested that policymakers would keep the powder dry. Meanwhile, the slowdown in the housing market has diminished the urgency for the central bank raise interest rates. Technical Outlook EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.2275; (P) 1.2316 (R1) 1.2376; More.... EUR/USD's sharp fall today now put 1.2257 support back into focus. Intraday bias is turned neutral first. For the moment, we're slightly favoring the case that price actions from 1.2445 are corrective in nature. And 1.2257 support should hold even in case of a brief breach. Another rise is expected and break of 1.2445 will target a test on 1.2555 key resistance. However, sustained break of 1.2257 will dampen this bullish view. In that case, intraday bias will be turned back to the downside, to resume the fall from 1.2555 through 1.2154. Suggested Readings Dollar on the Rise as FOMC Gathers; European Stocks Step Lower DAX Rebounds, Shrugs Off Soft Economic Sentiment Reports Sterling Slips On Inflation Slowdown, Oil Rises Sterling Strong Despite Weaker Inflation Forex Analysis: Nasdaq And EURGBP Fed Widely Expected To Hike Rates, Forward Guidance To Move The Dollar WTI Crude Futures Trade Around 2-Week High, Bullish Bias But Possibility Of Overstretched Rally Euro, Sterling Build On Gains Versus The Greenback, UK Inflation And US-Saudi Meeting Eyed Economic Data
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