المشاركات
Fundamental Headlines
• Investors Pile Into Commodities – Wall Street Journal
• U.S. Commander Urges South Korean Restraint – Wall Street Journal
• Obama Tax Move Lifts Hopes For Growth - Financial Times
•Banks in Europe Fail Market Tests For Stress With No Authority- Bloomberg
•Italy’s Budget Adds Political Risks To Fiscal Woes: Euro Credit - Bloomberg
EURUSD: German industrial production in October rose 2.9 percent after falling a revised 1.0 percent the previous month amid economists’ expectations 1.0 percent, while the annualized rate jumped 11.7 percent. Taking a look at the breakdown of the report, production of intermediate goods advanced 2.9 percent, while production in the energy sector retreated 0.3 percent in October. Indeed, fundamental data as of late point to further gains in production over the coming months. However, markets expect growth in Germany to come back under pressure in 2011 as governments in the bloc implement tough austerity measures in order to fight their high budget debts. Also on the economic docket overnight was German trade balance, which narrowed to 14.2 billion in October from 16.8 billion the month prior. Exports fell 1.1 percent to mark the lowest reading since April, while imports rose a mere 0.3 percent. In the currency markets, the EURUSD has extended its two day decline to reach an intraday low of 1.3191. Over the near term, we may see the euro come under increased selling pressure as debt contagion fears remain in the currency markets. Technical indicators continue to point to additional losses in the pair. The slow stochastic indicator has recently crossed back over to the downside, while the MACD has yet to reverse its course after pointing to downside risks in October. All in all, the EURUSD is likely to face further losses heading into the second half of the week.
Written by Michael Wright, Currency Analyst
To Receive Future Articles by Email, please contact me at mwright@fxcm.com
Michael Wright is the author of FX Headlines, Fundamentals vs. Technical’s, Weekly Spotlight, and Forex Trading Weekly Forecast
ليست هناك تعليقات:
إرسال تعليق