EUR/USD Fundamental Analysis August 10, 2012, Forecast

Posted August 09, 2012 18:04 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
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Analysis and Recommendations:

The EUR/USD dropped to 1.2281 as the elation over the ECB diminished and eco data and negative vibes from Spain and Greece returned to haunt the markets.

EUR is weak, having lost 0.4% since yesterday’s close and flirting with a break below psychological support at 1.2300.News flow from Europe has been relatively quiet over the last 12‐hours; however on balance news flow has generally been negative for EUR since the beginning of the week.

In the early morning China released some eco data that was fairly positive, with CPI falling and PPI showing a slight increase, but as the day progressed and China continued its July releases the data became extremely negative. Retails sales and Industrial Production both reported well under forecast, by the end of the day, investors had turned their hopes from a soft landing to monetary stimulus from the PBoC.

The US trade balance printed well above forecast whereas Canada and the UK disappointed markets.

The US unemployment release was a mixed bag.

Traders will watch the balance of the Chinese data tomorrow as well as for news flow from Spain.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports

Economic Data August 9, 2012 actual v. forecast

Aug. 09