EUR/USD Fundamental Analysis October 24, 2014 Forecast

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Updated: Aug 25, 2015, 02:00 UTC

Analysis and Recommendations: The EUR/USD added 7 points to trade at 1.2655 after German manufacturing data printed better than forecast, while others

EUR/USD Fundamental Analysis October 24, 2014 Forecast

Analysis and Recommendations:

The EUR/USD added 7 points to trade at 1.2655 after German manufacturing data printed better than forecast, while others were on a negative note but overall services and manufacturing PMI reported higher than expected. The euro fell 0.5 percent gaining as much as 0.2 percent. It slid 0.7 percent yesterday, the biggest decline since Oct. 14. The greenback advanced as the U.S. consumer-price index climbed 0.1 percent after decreasing 0.2 percent in August, a Labor Department report showed in Washington. A Bloomberg survey called for no change. Core inflation, excluding volatile food and fuel, also advanced 0.1 percent after being little-changed in August.

ECB Governing Council member Luc Coene told Belgian media there were no concrete plans for corporate bond purchases, but said this could be a way to prevent the bank from paying too much for just covered bonds and asset backed securities. The euro declined for a third day against the dollar as a report showed French manufacturing contracted more this month than economists forecast.

Eurozone businesses performed much better than anyone expected this month but did so by slashing prices again, and optimism about the future fell to its lowest level in over a year, surveys showed on Thursday.

The growth data will provide some relief for the European Central Bank but news that firms cut prices for the 31st month, and at the steepest rate than in almost five years, will stoke fears of deflation in the region.

Markit’s Composite Flash Purchasing Managers’ Index, based on surveys of thousands of companies across the region and seen as a good indicator of growth, rose to 52.2, above all forecasts in a Reuters poll.

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.

Today’s economic releases actual vs. forecast:

Cur.	Event	Actual	Forecast	Previous
NZD	CPI (QoQ) (Q2)	0.3%	0.5%	0.3%
AUD	Business Confidence	6		6
CNY	HSBC Mfg. PMI	50.4	50.3	50.2
EUR	French Mfg. PMI	47.3	48.5	48.8
EUR	French Services PMI	48.1	48.2	48.4
EUR	German Mfg. PMI	51.8	49.5	49.9
EUR	German Services PMI	54.8	55.0	55.7
EUR	Manufacturing PMI	50.7	49.9	50.3
EUR	Services PMI (Oct)	52.4	52.0	52.4
GBP	Mortgage Approvals	39.3K	41.5K	41.4K
GBP	Core Retail Sales (MoM)	-0.3%	-0.2%	0.3%
GBP	Core Retail Sales (YoY)	3.1%	3.4%	4.4%
GBP	Retail Sales (MoM)	-0.3%	-0.1%	0.4%
GBP	Retail Sales (YoY) (Sep)	2.7%	2.8%	3.7%
GBP	CBI Industrial Trends		-4	-4
USD	Initial Jobless Claims		282K	264K

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
NZD	Trade Balance (MoM)		-700M	-472M
NZD	Trade Balance (YoY)		1,510M	2,020M
GBP	GDP (QoQ) (Q3)		0.7%	0.9%
GBP	GDP (YoY) (Q3)		3.0%	3.2%
USD	New Home Sales (Sep)		470K	504K
USD	New Home Sales (MoM)		-5.8%	18.0%