Source: PaxForex Premium Analytics Portal, Fundamental Insight
French Consumer Spending for December increased 0.2% monthly. Economists predicted an increase of 0.2%. Forex traders can compare this to French Consumer Spending for November, which increased 0.9% monthly. The Preliminary French GDP for the fourth quarter increased 0.7% quarterly and 5.4% annualized. Forex traders can compare this to the third-quarter GDP, which increased 3.1% quarterly and 3.5% annualized.
The German Import Price Index for December increased 0.1% monthly and 24.0% annualized. Economists predicted an increase of 2.0% and 26.4%. Forex traders can compare this to the German Import Price Index for November, which increased 3.0% monthly and 24.7% annualized. The French PPI for December was increased 1.0% monthly. Forex traders can compare this to the French PPI for November, which decreased 3.9% monthly.
The Preliminary Spanish GDP for the fourth quarter increased 2.0% quarterly and 5.2% annualized. Economists predicted an increase of 1.4% and 4.5%. Forex traders can compare this to the Spanish GDP for the third quarter, which increased 2.6% quarterly and 3.4% annualized.
Italian Business Confidence for January is predicted at 115.3, and Italian Consumer Confidence is predicted at 116.5. Forex traders can compare this to Italian Business Confidence for December, reported at 115.2, and Italian Consumer Confidence, reported at 117.7.
The Preliminary German GDP for the fourth quarter is predicted to decrease 0.3% quarterly and increase by 1.8% annualized. Forex traders can compare this to the German GDP report for the third quarter, which increased 1.7% quarterly and 2.5% annualized.
Eurozone Money Supply M3 for December is predicted to increase 6.8% annualized, and Private Sector Loans are predicted to increase 4.2% annualized. Forex traders can compare this to Eurozone Money Supply M3 for January, which increased 7.3% annualized, and Private Sector Loans, which increased 4.2% annualized.
Eurozone Economic Confidence for January is predicted at 114.5. Forex traders can compare this to Eurozone Economic Confidence for December, reported at 115.3. Eurozone Industrial Confidence for January is predicted at 15.0. Forex traders can compare this to Eurozone Industrial Confidence for December, reported at 14.9. Eurozone Services Confidence for January is predicted at 10.3. Forex traders can compare this to Eurozone Services Confidence for December, reported at 11.2. Final Eurozone Consumer Confidence for January is predicted at -8.5. Forex traders can compare this to previous Eurozone Consumer Confidence for January, reported at -8.5.
US Personal Income for December is predicted to increase 0.5% monthly, and Personal Spending is predicted to decrease 0.6% monthly. Forex traders can compare this to Personal Income for November, which increased 0.4% monthly, and Personal Spending, which increased 0.6% monthly. The PCE Core Deflator for December is predicted to increase 0.5% monthly and 4.8% annualized. Forex traders can compare this to the PCE Core Deflator for November, which increased 0.5% monthly and 4.7% annualized.
The final US Michigan Consumer Sentiment for January is predicted at 68.7. Forex traders can compare this to US Michigan Consumer Confidence for December, reported at 70.6. The Final Current Conditions for January are predicted at 73.2, and Final Expectations are predicted at 65.8. Forex traders can compare this to Current Conditions for December, reported at 74.2, and Expectations reported at 68.3.
The forecast for the EUR/USD is cautiously turning bullish, following a capitulation sell-off in this currency pair. Traders should remain patient, as price action is likely to experience a volatility spike as bulls and bears wrestle for control. The Kijun-sen and the Tenkan-sen drift lower, but the Ichimoku Kinko Hyo Cloud flatlined. After the CCI moved into extreme oversold territory, traders should wait for a breakout above -100 before entering their buy orders. Can bulls regain control over the EUR/USD and force price action into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EUR/USD remain inside the or breakout above the 1.1100 to 1.1175 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.1130
- Take Profit Zone: 1.1365 – 1.1440
- Stop Loss Level: 1.1065
Should price action for the EUR/USD breakdown below 1.1100, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1065
- Take Profit Zone: 1.0930 – 1.0975
- Stop Loss Level: 1.1100
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