EUR/CHF Fundamental Analysis Jan. 17, 2012, Forecast
Economic Events:
05:00 EUR CPI (YoY) 2.80% 2.80%
The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
05:00 EUR German ZEW Economic Sentiment -49.20 -53.80
The German Zentrum f?r Europ?ische Wirtschaftsforschung (ZEW) Economic Sentiment Index gauges the six-month economic outlook. A level above zero indicates optimism; below indicates pessimism. The reading is compiled from a survey of about 350 German institutional investors and analysts.
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
05:00 EUR ZEW Economic Sentiment -48.70 -54.10
The Zentrum fur Europaische Wirtschaftsforschung (ZEW) Economic Sentiment Index rates the relative six-month economic outlook for the euro zone. On the index, a level above zero indicates optimism, below indicates pessimism. It is a leading indicator of economic health. The reading is compiled from survey of about 350 German institutional investors and analysts.
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
05:00 EUR Core CPI (YoY) 1.60% 1.60%
The Core Consumer Price Index (CPI) measures the change in the price of goods and services purchased by consumers, excluding food, energy, alcohol, and tobacco. The data has a relatively mild impact because overall CPI is the European Central Bank’s mandated inflation target.
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
Analysis and Recommendations:
Support and Resistance levels for tomorrows at S: 1.2052 1.206 1.2065
R: 1.2078 1.2086 1.2091
EUR/CHF is also a very important currency pair to watch at the moment, having broken below the important 1.2090 level. Irrespective of the resolve of the SNB to maintain the ‘peg’ at 1.2000 the closer we get to the line in the sand, the greater the gravitational pull of the market stop losses below.The downgrades by S&P and Moody’s statements on France continue to exert pressure on the Euro. Consequently, this has seen EUR/CHF edge ever closer to the 1.2000 level. We believe such a move towards 1.2050 could be an opportunity to establish a bullish EUR/CHF bias, and this could come as early as Tuesday.
Originally posted here
