Market Review for January 19, 2016
The markets are behaving rather steady after China data last night. China GDP came in at 6.8% and the industrial production at 5.9%. Fixed Asset Investment ytd/y at 10% while Retail Sales y/y announced at 11.1%. The data matched the forecast and this help the increase of investors risk appetite.
In the currency markets, majors pairs are staying in tight range for the moment with weakness seen in commodity currencies. UK announced slightly better than expected CPI y/y at 0.2% and push GBPUSD above 1.4300. The other data from UK shoed that PPI Input m/m at -0.8%, the RPI y/y 1.2%, HPI y/y at 7.7% and the PPI Output m/m at -0.2%. WTI crude oil is trading above 29 handle after dipping to as low as 28.36 yesterday. Gold is still in range near 1090 levels.
Earlier today we had the Eurozone Current Account at 26.4 billion better than the 19.3 expected and the Swiss PPI m/m missing the estimate of 0.2% at -0.4%. Further to that German ZEW economic Sentiment came in at 10.2. Later today Canada will release Foreign Securities Purchases and NZD will report GDT Price index and CPI data.
View our full economic calendar for a daily roundup of major economic events.
Data releases to monitor:
CAD: Foreign Securities Purchases
NZD: GDT Price Index, CPI q/q
USD: NAHB Housing Market Index, TIC Long-Term Purchases
Trade Idea of the Day
Currently the pair is trading at 1.5720. Traders must monitor the 1.5960 resistance level and the support level 1.5515 for possible breakouts. A possible scenario would be a further upwards movement near 1.5740 where a break may lead to 1.5788 and possible 1.5790. An alternative scenario would be a break of 1.5682 support with target the 1.5610 area.
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