EUR/GBP Fundamental Analysis Jan. 17, 2012, Forecast
Economic Events:
Jan. 17
04:30 GBP Core CPI (YoY) 3.00% 3.20%
The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy. The CPI measures price change 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 GBP, while a lower than expected reading should be taken as negative/bearish for the GBP
04:30 GBP CPI (YoY) 4.20% 4.80%
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 GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.
05:00 GBP BoE Gov King Speaks
Bank of England (BOE) Governor Mervyn King (July 2003 – June 2013) is to speak. As head of the BOE’s Monetary Policy Committee (MPC) which controls short term interest rates, King has more influence over sterling’s value than any other person. Traders scrutinize his public engagements for clues regarding future monetary policy. In view with the current S&P downgrades including the downgrade of the Emergency Fund Bonds, The BoE statements will be very important. This can cause a major move in this currency pair.His comments may spark a short-term positive or negative trend.
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: 0.8254 0.8258 0.8262
R: 0.827 0.8274 0.8278
Tomorrow, the markets will be addressing the S&P downgrade of the European Emergency Fund, this was the other shoe dropping that was heard around the world today. The GBP is weak, but the Euro will continue to plunge. Opening an opportunity to see some upside action for the GBP. EUR/GBP shorts might be the most efficient way to take advantage of the EUR weakness.
Originally posted here
