After a quiet start to the week, the economic calendar offers up a deluge of market-moving data on Tuesday, culminating in a revised publication on Eurozone GDP.
Action begins at 05:30 GMT with a report on French unemployment. France’s ILO-calculated unemployment rate is forecast to hold steady at 9.2% in the second quarter.
At 06:00 GMT, the German government will release its second estimate of Q2 GDP. Like the first estimate, the revised reading will likely show quarterly growth of 0.3%. Europe’s largest economy expanded at double the pace during the first quarter.
At 06:00 GMT, the European Commission’s statistical agency will release revised second-quarter GDP data. Like the preliminary estimate, Tuesday’s release will likely show expansion of 0.3% quarter-on-quarter. This translates into a year-over-year growth rate of 2.1%.
At the same time as the GDP report, the German government will unveil final consumer inflation data for July. The consumer price index (CPI) is projected to rise 2% annually in July, according to a median estimate of economists.
Forty-five minutes later, France will also report final CPI numbers for last month. France’s annual inflation rate likely came in at 2.6%, according to analysts.
At the same time as the GDP report, the Centre for European Economic Research (ZEW) will release the economic sentiment index. The August edition is forecast to improve to -16.4 from -18.7 in July.
There are no major data releases scheduled for the North American session. The US Department of Labor will report on export and import prices at 12:30 GMT. The indicators provide a gauge of inflationary trends for goods imported and products shipped overseas.
Europe’s common currency came off yearly lows on Monday, as prices returned above the 1.1400 US handle. However, EUR/USD remains firmly in a downtrend with the dollar exerting greater dominance over its peers ahead of multiple interest rate hikes expected this year. The EUR/USD exchange rate currently sits at 1.1408, where it was little changed compared with the previous close. The trend remains bearish, with immediate support located at 1.1385. On the flipside, the pair is likely to run into resistance at 1.1435.
Cable remains in consolidation mode this week, with prices hovering just above yearly lows. At the time of writing, the GBP/USD pair was trading at 1.2764, with immediate support locate at 1.2723 (2018 low). On the opposite side of the ledger, immediate resistance is located at 1.2789, Monday’s intraday swing high.
The USD/JPY experienced a sudden, albeit brief, decline on Monday, with prices bottoming at 110.19. The pair quickly returned above 110.70, where it currently sits. From a technical perspective, the bulls are eyeing a re-test of the 110.10 level, or the high from 10 August. On the flipside, immediate support is located near Monday’s intraday low.