Data released:
07:00 GMT Germany Retail Sales (YoY) (Dec) -2.4% 1.9% 1.1%
07:00 GMT Germany Retail Sales (MoM) (Dec) -2.5% 0.2% 0.9%
10:00 GMT EMU Consumer Price Index - Core (YoY) (Jan) Preliminar 0.8% _ 0.7%
10:00 GMT EMU Consumer Price Index (YoY) (Jan) Preliminar 0.7% 0.9% 0.8%
10:00 GMT EMU Unemployment Rate (Dec) 12.0% 12.1% 12.0%
The dollar headed for its best January since 2010 before data analysts said will show Americans increased spending for an eighth month, adding to evidence the U.S. economy is growing.
EURO
The euro was poised for its biggest monthly decline since March and the first loss since August against the greenback before a European Central Bank policy meeting Feb. 6.
EMU’s advanced inflation figures came in softer than expected, rising 0.7% on a yearly basis vs. 0.9% estimated and down from December’s 0.8%.
The data add to the disappointing Retail Sales in Germany, contracting beyond estimates more than 2% in December.
Further data from the 18-nation bloc reported a steady unemployment rate at 12.0% in December, bettering forecasts at 12.1% however.
Deutsche Bank’s experts now expect ECB to cut rates on Feb 6
EUR/USD stays close to $1.3520/30 (initial support) before it began to recover. Break under $1.3500 opens a door to $1.3400 (Nov 21 lows). Initial resistance comes at $1.3580, then - at $1.3680. Further resistance comes at $1.3740.
POUND
The pound remains under pressure.
GBP/USD holds a bit higher yesterday’s lows on $1.6440 (initial support). Below support comes at $1.6400. Initial resistance comes at $1.6520 (NY hourly high). Strong resistance comes at $1.6660 (Friday’s high), extending to $1.6675/80 (channel line from Jan 10), then - at $1.6740/60.
YEN
January has seen the yen win in FX. The Nikkei is the worst of the big equity indices and there is a danger that Nikkei softness fuels a little doom-loop by triggering a USD/JPY break lower.
USD/JPY trades around Y102.20 (initial support) with below support comes at recent lows on Y101.90/80. Below losses may extend to Y101.10 (Nov 26 lows). Above session high resistance acts around Y102.90/Y103.00.