German CPI the key today

The euro is in the headlines today, with a slight bounce yesterday and carrying on into the day on the back of next week’s ECB action. With the EU inflation report out tomorrow, this could change the mind of the markets, however.

Today we have some significant data from Germany in the form of unemployment change, expected at -6k from -12k previously. Also German CPI numbers will be released, with most expecting a drop to 0.0% from 0.3%. This will cause some pain for the euro if it comes out as expected.

The M3 money supply will also be released and this is a good indicator for CPI in the eurozone as it shows money in circulation. The figures are expected to be the same as last month at 1.5%.

The US is set for some decent data releases today, helping it to keep its charge against most major pairs. The preliminary GDP is due up and is expected to have slightly dropped to 3.9% from 4%. This will be followed by unemployment claims, expected to be pretty much the same as last at 298k. To finish off the action paced day, pending home sale are expected at 0.6% – a rise from the previous -1.1%.

EUR/USD

Supports 1.3159 1.3127 1.3102 | Resistance 1.3216 1.3242 1.3274

USD/JPY

Supports 103.71 103.55 103.33 | Resistance 104.09 104.32 104.48

GBP/USD

Supports 1.6538 1.6503 1.6470 | Resistance 1.6607 1.6641 1.6676

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