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EUR/USD – Limited Movement on Tepid Euro Numbers

EUR/USD has started the week quietly, as the pair trades in the mid-1.27 range in Monday’s European session. In economic news, German PPI came in at 0.0%, while Eurozone Current Account posted a surplus of EUR 18.9 billion. There are no US data releases on Monday.

The markets were greeted with lukewarm Eurozone data on Monday morning. Inflation remains anemic, as German PPI came in at a flat 0.0%, shy of the estimate of 0.1%. The indicator has not produced a gain since December, as Germany, the Eurozone locomotive, continues to struggle with a lack of inflation. Eurozone Current Account, which is closely linked to currency demand, posted a surplus of EUR 18.9 billion, little changed from the previous release of EUR 18.7 billion. This reading disappointed the markets, as the estimate stood at EUR 21.3 billion.

US releases wrapped up the week on a high note, as UoM Consumer Sentiment climbed to 86.4 points, its highest reading since July 2007. The markets had expected a reading of 84.3 points. This indicates that the US consumer remains optimistic about the economy and is not overly concerned about warnings of a global slowdown. On the housing front, Building Permits and Housing Starts met expectations. Strong US employment numbers continue to drive the US recovery, as US job claims dropped to 264 thousand, marking a 14 -year low. The estimate stood at 286 thousand.

 

EUR/USD for Monday, October 20, 2014

EUR/USD October 20 at 9:10 GMT

EUR/USD 1.2752 H: 1.2778 L: 1.2732

EUR/USD Technical

S1 S2 S1 R1 R2 R3
1.2407 1.2518 1.2688 1.2806 1.2905 1.2984

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

EUR/USD ratio is pointing to gains in long positions on Monday. This is not consistent with the lack movement we’re seeing from the pair. The ratio has a majority of long positions, indicative of trader bias towards the euro breaking out and moving higher.

 

EUR/USD Fundamentals

*All release times are GMT

*Key releases are highlighted in bold.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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