Source: PaxForex Premium Analytics Portal, Fundamental Insight
French Consumer Spending for March decreased by 1.3% monthly. Economists predicted an increase of 1.2%. Forex traders can compare this to French Consumer Spending for February, which rose 0.9% monthly. The Preliminary French GDP for the first quarter came in flat at 0.0% quarterly. Economists predicted an expansion of 0.3% quarterly. Forex traders can compare this to the fourth-quarter GDP, which rose 0.8% quarterly.
The German Import Price Index for March is predicted to increase 3.4% monthly and 28.6% annualized. Forex traders can compare this to the German Import Price Index for February, which rose 1.3% monthly and 26.3% annualized.
The Preliminary French CPI for April is predicted to expand 0.2% monthly and 4.5% annualized. Forex traders can compare this to the French CPI for February, which increased 1.4% monthly and 4.5% annualized. The French Harmonized CPI for April is predicted to rise 0.2% monthly and 5.1% annualized. Forex traders can compare this to the French Harmonized CPI for March, which increased 1.6% monthly and 5.1% annualized.
The Preliminary Spanish GDP for the first quarter is predicted to increase 0.5% quarterly and 6.5% annualized. Forex traders can compare this to the Spanish GDP for the fourth quarter, which rose 2.2% quarterly and 5.5% annualized. The Preliminary Italian GDP for the first quarter is predicted to decrease 0.2% quarterly and increase by 5.8% annualized. Forex traders can compare this to the Italian GDP for the fourth quarter, which expanded 0.6% quarterly and 6.2% annualized. The Preliminary German GDP for the first quarter is predicted to rise 0.1% quarterly and 3.8% annualized. Forex traders can compare this to the German GDP for the fourth quarter, which dropped 0.3% quarterly and rose 1.8% annualized.
Eurozone Money Supply M3 for March is predicted to expand by 6.2% annualized, and Private Sector Loans are predicted by 4.6% annualized. Forex traders can compare this to Eurozone Money Supply M3 for February, which rose 6.3% annualized, and to Private Sector Loans by 4.3% annualized.
The Preliminary Italian CPI for April is predicted to expand 0.9% monthly and 6.3% annualized. Forex traders can compare this to the Italian CPI for March, which rose 1.0% monthly and 6.5% annualized. The Preliminary Italian Harmonized CPI for April is predicted to increase 1.0% monthly and 6.5% annualized. Forex traders can compare this to the Italian Harmonized CPI for March, which rose 2.4% monthly and 6.8% annualized.
Eurozone CPI for April is predicted to expand 1.8% monthly and 7.5% annualized. Forex traders can compare this to the Eurozone CPI for March, which increased 2.4% monthly and 7.4% annualized. Eurozone Core CPI for April is predicted to rise 0.9% monthly and 3.2% annualized. Forex traders can compare this to the Eurozone Core CPI for March, which expanded 1.2% monthly and 2.9% annualized.
The preliminary Eurozone GDP for the first quarter is predicted to increase 0.3% quarterly and 5.0% annualized. Forex traders can compare this to the Eurozone GDP for the fourth quarter, which rose 0.3% quarterly and 4.6% annualized.
UK Nationwide House Prices for April are predicted to increase 0.8% monthly and 12.6% annualized. Forex traders can compare this to UK Nationwide House Prices for March, which rose 1.1% monthly and 14.3% annualized.
UK Mortgage Approvals for March are predicted at 74.85K. Forex traders can compare this to UK Mortgage Approvals for February, reported at 70.99K. UK Net Consumer Credit for March is predicted at £0.843B, and Net Mortgage Lending is predicted at £6.000B. Forex traders can compare this to UK Net Consumer Credit for February, reported at £1.876B, and Net Mortgage Lending at £4.670B.
The forecast for the EUR/GBP remains bearish after this currency pair reached a lower high and began to drift lower. Adding to downside momentum is the Ichimoku Kinko Hyo Cloud, which took a bearish bias with the bearish crossover of the Senkou Span A below the Senkou Span B. Volatility is likely to increase after the Kijun-sen turned flat and the Tenkan-sen drifts higher. Adding to bearishness is the CCI following its breakdown from extreme overbought territory with plenty of downside potential. Traders should monitor this technical indicator for a move below zero, increasing selling pressure. Can bears pressure the EUR/GBP into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EUR/GBP remain inside the or breakdown below the 0.83800 to 0.8460 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Long Position @ 0.8420
- Take Profit Zone: 0.8200 – 0.8230
- Stop Loss Level: 0.8520
Should price action for the EUR/GBP breakout above 0.8460, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Short Position @ 0.8520
- Take Profit Zone: 0.8600 – 0.8655
- Stop Loss Level: 0.8460
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