The EUR/USD edged down 20 points to 1.1168 as the greenback continued to gain momentum after better than expected eco data and strong comments on rate
The EUR/USD edged down 20 points to 1.1168 as the greenback continued to gain momentum after better than expected eco data and strong comments on rate increases from Stanley Fischer again today. Prices for Fed funds futures suggested they expect about a 20 percent chance of a hike next month and just over even odds for such a move in December. The Fed also has a policy meeting scheduled for early November. The U.S. Labor Department’s monthly employment report on Friday is expected to show the economy added 180,000 jobs in August, according to the median forecast in a Reuters poll.
German inflation indices for August showed worse-than-expected data. CPI index for August showed unchanged pace of increase in prices on monthly basis, while the CPI on year-on-year basis accelerated in the same pace as in July, 0.4%. The big event in the EU today was the decision by the EU commission to force Ireland to claw back tax breaks it gave to Apple. The European Commission accused Ireland in 2014 of dodging international tax rules by letting Apple shelter profits worth tens of billions of dollars from tax collectors in return for maintaining jobs. Apple and Ireland rejected the accusation and have both said they will appeal any adverse ruling.
The source said the Commission will recommend a figure in back taxes that it expects to be collected but it will be up to Irish authorities to calculate exactly what is owed.
Apple was one of the first U.S. companies relocate much of its earnings in Ireland, allowing the company to pay a much corporate lower tax rate in some years — as low as 2 percent, compared to 35 percent in the U.S.
FxEmpire provides a wide variety of analysis on a daily, weekly and monthly basis ranging from our exceptional technical analysis as well as our in-depth fundamental analysis along with our daily news and market updates. To get the best understanding of each asset it is important to review the short term daily analysis with the longer term monthly reports. To get email notification when each of these are posted please sign up for our daily newsletter.
Upcoming Economic Events that you should be monitoring:
August 31, 2016
Country | Event | Volatility | Previous |
GBP | Gfk Consumer Confidence | 2 | -12 |
JPY | Industrial Production | 2 | -1.5 |
JPY | Industrial Production | 2 | 2.3 |
AUD | HIA New Home Sales | 2 | 8.2 |
CHF | UBS Consumption Indicator | 2 | 1.34 |
EUR | Unemployment Rate s.a. | 3 | 6.1 |
EUR | Unemployment Change | 3 | -7 |
EUR | Unemployment | 2 | 11.6 |
EUR | Unemployment Rate | 2 | 10.1 |
EUR | Consumer Price Index | 3 | 0.2 |
EUR | Consumer Price Index – Core | 3 | 0.9 |
USD | ADP Employment Change | 2 | 179 |
CAD | Gross Domestic Product Annualized | 2 | 2.4 |
CAD | Gross Domestic Product | 2 | -0.6 |
USD | Chicago Purchasing Managers’ Index | 2 | 55.8 |
USD | Pending Home Sales | 2 | 1 |
USD | Pending Home Sales | 2 | 0.2 |
Government Bond Auctions
Date Time Country Auction
Aug 29 13:00 Norway Details of bond auction on Aug 31
Aug 30 11:10 Italy Holds bond auction
Aug 31 11:05 Norway Holds bond auction
Aug 31 11:30 Germany Eur 4bn Sep 2018 Schatz
Sep 01 10:30 Spain Holds bond auction
Sep 01 11:30 UK Jul 2022 Gilt
Sep 01 11:50 France Holds bond auction