Tue, Dec 01, 2020 @ 05:10 GMT
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Germany’s Consumer Price Index Rose As Initially Estimated In December

For the 24 hours to 23:00 GMT, the EUR declined 0.13% against the USD and closed at 1.1137.

In economic news, Germany’s final consumer price index (CPI) advanced 1.5% on a yearly basis in December, meeting market expectations and confirming the preliminary print. In the prior month, the CPI had recorded a rise of 1.1%.

The US dollar gained ground against its major peers, amid upbeat US economic data.

In the US, data showed that the Philadelphia Fed manufacturing index jumped to an 8-month high level of 17.0 in January, higher than marker anticipations for a rise to a level of 3.8. In the previous month, the index had registered a revised level of 2.4. Further, the nation’s advance retail sales rose 0.3% on a monthly basis in December, rising for the third straight month and meeting market expectations. Advance retail sales had registered a revised similar rise in the prior month. Also, the US seasonally adjusted initial jobless claims unexpectedly dropped to a level of 204.0K in the week ended 10 January 2020, declining for the fifth consecutive week and defying market expectations for a rise to a level of 216.0K. In the prior week, initial jobless claims had recorded a reading of 214.0K. On the other hand, the NABH housing market index in the US eased to 75.0 in January, at par with market expectations. In the preceding month, the index had recorded a reading of 76.0. Moreover, the US business inventories dropped 0.2% on a monthly basis in November, marking its biggest fall in 2.5 years and more than market consensus for a fall of 0.1%. In the preceding month, business inventories had recorded a revised rise of 0.1%.

In the Asian session, at GMT0400, the pair is trading at 1.1132, with the EUR trading a tad lower against the USD from yesterday’s close.

The pair is expected to find support at 1.1116, and a fall through could take it to the next support level of 1.1099. The pair is expected to find its first resistance at 1.1161, and a rise through could take it to the next resistance level of 1.1189.

Looking ahead, traders would await Euro-zone’s consumer price index for December and construction output for November, slated to release in a few hours. Later in the day, the US Michigan consumer sentiment index for January, the JOLTS job openings for November building permits, housing starts and industrial production all for December, will garner significant amount of investors’ attention.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

GCI Financialhttp://www.gcitrading.com/
DISCLAIMER : GCI's Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be used as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

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