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EUR/USD – Steady as Euro Industrial Production Matches Forecast

EUR/USD is steady on Wednesday, as the pair trades in the mid-1.24 range in the European session. On the release front, it’s been a slow week, with only minor events on Monday and Tuesday. In today’s events, Eurozone Industrial Production matched expectations with a gain of 0.6%. The German Wholesale Price Index disappointed, with a reading of -0.6%.

Eurozone inflation levels continue to limp along. German Wholesale Price Index declined for the second time in three readings, coming in at -0.6%. This was well short of the estimate of +0.2%, and was the index’s steepest decline since November 2013. We’ll get a look at more inflation data during the week, as Germany and France release CPI on Thursday, followed by Eurozone Final CPI on Friday.

Employment numbers have been strong in the US, and this played a major role in the Fed decision to wind up QE in the last week of October. However, US Nonfarm Payrolls, the most important employment indicator, was a big disappointment in October. The indicator slipped to 214 thousand, well short of the estimate of 235 thousand. On a brighter note, the unemployment rate slipped to 5.8%, its lowest level in six years. As well, last week’s unemployment claims fell to 278 thousand. This was better than the estimate of 285 thousand and marked a three-week low.

 

EUR/USD for Wednesday, November 12, 2014

EUR/USD November 12 11:15 GMT

EUR/USD 1.2468 H: 1.2498 L: 1.2430

EUR/USD Technical

S1 S2 S1 R1 R2 R3
1.2143 1.2286 1.2407 1.2518 1.2688 1.2806

 

Further levels in both directions:

 

OANDA’s Open Positions Ratio

EUR/USD ratio is pointing to gains in short positions on Wednesday, reversing the direction seen a day earlier. This is not consistent with the pair’s movement, as the euro is almost unchanged on the day. The ratio is close to a split between and short positions, indicative of a lack of trader bias towards what direction to expect from EUR/USD.

 

EUR/USD Fundamentals

*Key releases are highlighted in bold.

*All release times are GMT

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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