Talking Points:
Euro[1] may fall as disappointing German CPI huts ECB outlook Japanese Yen[2] corrects higher after steep losses on Wednesday NZ Dollar down following soft 15-year bond auction results German CPI data headlines the economic calendar in European trading hours. The headline on-year inflation rate is expected to rise to 1.7 percent, marketing the first increase in four months and the highest reading since December 2017. Broadly speaking, Eurozone economic news-flow has increasingly deteriorated relative to baseline forecasts in recent months. That might foreshadow a downside surprise. Indeed, PMI survey data put inflation at a three-month low. A disappointment might weigh on expected ECB tightening prospects, hurting the Euro. The Japanese Yen corrected broadly higher in Asia Pacific trade after suffering deep losses[3] against the spectrum of its G10 FX counterparts in the prior session. The New Zealand Dollar[4] fell, which might have reflected the outcome of a 15-year bond auction. Average yields came in at 3.14 percent, down from 3.34 percent when analogous paper was sold a month ago despite weaker demand (the bid-to-cover ratio eased to 2.41 from 3.18 previously). That might speak to ebbing appeal of NZD-denominated assets. Get our guide to learn how you can use economic news into your FX trading strategy[5]! ASIA PACIFIC TRADING SESSION
European Trading Session
** All times listed in GMT. See the full economic calendar here[6]. FX TRADING RESOURCES --- Written by Ilya Spivak, Currency Strategist for DailyFX.com To contact Ilya, use the comments section below or @IlyaSpivak[7] on Twitter To receive Ilya's analysis directly via email, please SIGN UP HERE[8]
References
- ^ Euro (www.dailyfx.com)
- ^ Japanese Yen (www.dailyfx.com)
- ^ suffering deep losses (www.dailyfx.com)
- ^ New Zealand Dollar (www.dailyfx.com)
- ^ use economic news into your FX trading strategy (www.dailyfx.com)
- ^ full economic calendar here (www.dailyfx.com)
- ^ @IlyaSpivak (www.twitter.com)
- ^ SIGN UP HERE (forms.aweber.com)
