Disappointing inflation data from the UK yesterday, while the Eurozone economic sentiment also took a dip. On today’s daily Forex news and trade opportunities, all eyes will be on UK labor earnings data.
14th September, AtoZForex – The crude oil inventories report and New Zealand’s GDP report will also be key on the daily Forex news.
#1 German ZEW Economic Sentiment remains
The German ZEW Economic Sentiment came in flat, as the index remained unchanged at 0.5. Alongside, the Current Conditions came in at 55.1, indicating that both readings are below expectations. This means that the German businesses are not optimistic.
#2 UK CPI remained unchanged
Ahead the UK consumer price index release, the market expected a positive inflationary data. Hence, traders were carefully watching if anything above that forecast will indicate a further bullish direction for the Pound. Despite the pressure from the weak GBP, the UK CPI remained unchanged at 0.6%.
#3 Oil drops on IEA report
The demand for oil in global markets seems to be deteriorating at a faster speed than expected, as it is reported by the International Energy Agency (IEA) in its latest market update. Oil dropped on Tuesday in the wake of the forecasts on the demand growth, which suggested that the global oversupply of unused inventories might continue for longer than anticipated.
#4 UK labor data
UK’s average earnings index 3m/y and claimant count change are forecast to come at 2.1% and 1.7k respectively. Another disappointing report is likely to sink the pound, considering the disappointing inflation data previously reported yesterday.
#5 Crude Oil Inventories
Oil prices slid yesterday, after the IEA report on deteriorating demand for oil. Last week, oil prices rallied about 3.8% today, after the US crude oil inventories fell surprisingly for the first time in about 10 weeks. It is, however, forecast to show 2.8m barrels build in stockpiles in the last week.
Opportunity: Sell Brent on rallies
#6 New Zealand GDP q/q
The kiwi has taken a pause from its recent extended rally. The country’s change in the inflation-adjusted value of all goods and services produced by the economy is forecast to 1.1%. A potential lift from 0.7% growth recorded in the previous quarter.
Opportunity: Sell NZDUSD on disappointing GDP data
#7 US stock market falls
Yesterday, all three major indexes in the US dipped substantially, closing the day near their lows. Tuesday marked the third straight day that the S&P 500 moved by 1% in either direction, ending over 40-day streak without such volatility.
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