The trading week started with massive volatiltiy over the weekend. Markets opened with large Gap for EUR and GBP pairs pushing the already troubled EUR/USD and GBP/USD pairs further down.
Early Europe Fundamental Analysis shows that the bearish trend is yet to be over:
- The German CPI for Saxony was announced this morning rising 0.2% mom in December, a rebound from -0.1% mom previously
- The yoy rate slowed to5% yoy in December, from 0.7% yoy previously
- Althought right after the news EUR/USD bounced up by some 10 pips, with the Greek Eurozone breakup fears the pair could not sustain its momentum and lost some 60 pips, plunging from 1.1975 level to 1.1915 levels.
- A preliminary pan-German December inflation data is to be announced today at 1:00 pm GMT.
- Aggregate CPI data for the European Economic zone for the 19 European states will be announced on Wednesday.
- UK’s construction PMI came 57.6 in December, down from 4 in November which is also below the initial forecast of 59.0
- Since the news was announced GBP/USD has been depreciating and so far the pair has lost approximately 40 pips since the release
- There was a strong overall rise in business activity during December however the growth phase eased for the third consecutive month
- Markit commented on the data as “Slowest rise in UK construction output since July 2013”