Here is the key factor to keep in mind today for Euro trades:
- Eurozone CPI: Inflation data out of the Eurozone will continue to play a key role as ECB President Draghi is rumored to either adjust or increase the current stimulus in place by the European central bank. Economists predict the final October CPI to increase by 0.1% monthly and to remain flat at 0.0% annualized. Forex traders can compare this to the previous October CPI which increased by 0.2% monthly and remained flat at 0.0% annualized. Economists predict the core CPI for October to increase by 1.0% annualized. Forex traders can compare this to the previous October report which showed the core CPI increase by 1.0%. 15 minutes after the announcement of the October CPI, Mario Draghi will give a speech in Madrid, Spain and forex traders should pay close attention to his statements on monetary policy. The Eurozone economy has shown signs of strength over the past few months, but unemployment remains high while inflation may be replaced by annualized deflation which makes the decision by the ECB harder on how to adjust monetary policy.
Here is the key factor to keep in mind today for Japanese Yen trades:
- Japanese GDP: Japanese released its third-quarter GDP which disappointed forex traders and showed the Japanese economy once again in a recession. The GDP decreased by 0.2% quarterly and by 0.8% annualized. Economists predicted a decrease of 0.1% quarterly and 0.2% annualized. Forex traders can compare this to the second-quarter’s decrease of 0.2% quarterly and 0.7% annualized. The nominal GDP for the third-quarter was reported flat at 0.0% quarterly. Economists predicted a decrease of 0.2% quarterly. Forex traders can compare this to the second-quarter’s increase of 0.2% quarterly. The GDP Deflator rose by 2.0% in the third-quarter annualized. Economists predicted an increase of 1.7% annualized. Forex traders can compare this to the second-quarter’s increase of 1.5% annualized. GDP Private Consumption rose by 0.5% in the third-quarter. Economists predicted an increase of 0.4% quarterly. Forex traders can compare this to the second-quarter’s decrease of 0.6% quarterly. GDP Business Spending decreased by 1.3% in the third-quarter. Economists predicted a decrease of 0.5% quarterly. Forex traders can compare this to the second-quarter’s decrease of 1.2% quarterly. The Japanese economy may continue to under-perform in the fourth-quarter as well as businesses slash spending.
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