Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Final French CPI for December is predicted to decrease by 0.1% monthly and to increase by 5.9% annualized. Forex traders can compare this to the French CPI for November, which expanded by 0.3% monthly and 6.2% annualized. The Final French Harmonized CPI for December is predicted to contract by 0.1% monthly and rise by 6.7% annualized. Forex traders can compare this to the French Harmonized CPI for November, which rose by 0.4% monthly and 7.1% annualized.
The Final Spanish CPI for December is predicted to rise by 0.3% monthly and 5.8% annualized. Forex traders can compare this to the Spanish CPI for November, which decreased by 0.1% monthly and expanded by 6.8% annualized. The Final Spanish Harmonized Spanish CPI for December is predicted to increase by 0.1% monthly and 5.6% annualized. Forex traders can compare this to the Spanish Harmonized CPI for November, which contracted by 0.3% monthly and accelerated by 6.7% annualized.
Italian Industrial Production for November is predicted to increase by 0.3% monthly. Forex traders can compare this to Italian Industrial Production for October, which contracted by 1.0% monthly.
German Full Year GDP Growth for 2022 is expected at 1.8%. Forex traders can compare this to German Full Year GDP Growth for 2022, which expanded by 2.6%.
Eurozone Industrial Production for November is predicted to rise by 0.5% monthly and 0.5% annualized. Forex traders can compare this to Eurozone Industrial Production for October, which dropped by 2.0% monthly and expanded by 3.4% annualized.
The Eurozone Trade Balance for November is predicted at -€21.10B. Forex traders can compare this to the Eurozone Trade Balance for October, reported at -€26.50B.
UK Construction Output Seasonally Adjusted for November is predicted to decrease by 0.3% monthly and rise by 5.4% annualized. Forex traders can compare this to UK Construction Output Seasonally Adjusted for October, which rose by 0.8% monthly and 7.4% annualized.
The UK GDP for November is predicted to decrease by 0.3% monthly, drop by 0.3% for the three-month-over-three-month period ending in November, and rise by 0.3% annualized. Forex traders can compare this to the UK GDP for October, which rose by 0.5%, contracted by 0.3% for the three-month-over-three-month period ending in October, and expanded by 1.5% annualized.
UK Industrial Production for November is predicted to decrease by 0.3% monthly and 3.0% annualized. Forex traders can compare this to UK Industrial Production for October, which rose by 0.2% monthly and decreased by 2.4% annualized. UK Manufacturing Production for November is predicted to contract by 0.2% monthly and drop by 4.8% annualized. Forex traders can compare this to UK Manufacturing Production for October, which increased by 0.7% monthly and decreased by 4.6% annualized.
The UK Visible Trade Balance for November is predicted at -£14.900B. Forex traders can compare this to the UK Visible Trade Balance for October, reported at -£14.480B.
The forecast for the EUR/GBO turned bearish after this currency pair reached the lower band of its horizontal resistance area. Volatility could accelerate with the Kijun-sen and the Tenkan-sen flatlining while the Ichimoku Kinko Hyo Cloud moves higher. Traders should monitor the CCI in extreme overbought territory after recording a lower high, which formed a negative divergence. A breakdown below 100 could spark an overdue sell-off. Can bears overpower bulls and regain control of price action to force 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 0.8835 to 0.8925 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8885
- Take Profit Zone: 0.8690 – 0.8725
- Stop Loss Level: 0.8960
Should price action for the EUR/GBP breakout above 0.8925, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8960
- Take Profit Zone: 0.9045 – 0.9085
- Stop Loss Level: 0.8925
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