Forex Daily Recap – Fiber Drenched in Red over Downbeat Eurozone CPI

Bank of Korea skipped a rate cut this time to save firepower for the next meeting. Today, the Ninja appeared to shed gains over upbeat Japanese data.
Bharat Gohri


After making a downside rebound price action on testing the center line of the Bollinger Bands on August 26, the pair continued to slip even today. Quite noticeably, the mouth of the south-side heading Bollinger Bands was getting wider over time, signifying high volatility. Fiber has fallen on Friday mainly on the back of adverse EUR-specific economic data releases.

EURUSD 1 Day 30 August 2019

Although the Eurozone July Unemployment rate remained in-line with the previous statistics, the Eurozone August YoY CPI – Core missed estimates. Meantime, the highly crucial Italian QoQ GDP Growth rate reported 0.1% lower than the previous data. Earlier today, German July MoM Retail Sales published -2.2% over -1.0% forecasts.

Nonetheless, the Average Directional Index (ADX) was indicating below 20 mark, revealing a lack of momentum in the downward price actions.


Yesterday, the USD/JPY bulls had already crossed above the center line and entered into the upper vicinity of the Bollinger Bands. Anyhow, the pair appeared to shed significant accumulated gains today on the back of upbeat Japanese data releases. Despite losing ground, the USD/JPY pair continued to sustain above the center line, keeping intact uptrend possibilities.

USDJPY 1 Day 30 August 2019

At around 05:00 GMT, the Japanese Unemployment Rate recorded 0.1% lower this time over the previous 2.3%. Also, the Industrial Production data (both YoY and MoM) reported positive figures in comparison to the previously recorded negative statistics. Laterwards, the YoY Housing Starts came around -4.1% over the last -5.4%.


South Korea’s central bank skipped a rate cut this time in order to save firepower for the next meeting. Notably, the Bank of Korea (BOK) had lowered the interest rates in the last July meeting. Anyhow, this time, the BOK policymakers voted to keep the interest rates unchanged near 1.5% the same as the previous rates.

“I expect a cut at the October meeting as domestic demand remains weak and as we need to confirm a sustained recovery in exports, especially semiconductor exports that kicked off the country’s economic downturn,” said Oh Suk-tae, an economist at Societe Generale in Seoul.

USDKRW 1 Day 30 August 2019

On the technical side, the USD/KRW pair has slightly moved out of the track, deviating below the 2:1 Gann line. And, the Relative Strength Index (RSI) was hovering near 50 mark, showing neutral buyer interest. However, even if the pair had made further downside moves, then the significant underlying SMAs would have got activated.


As per the predictions in our USD/CAD Daily Forecast Article, the bulls continued to take control over the pair’s daily price actions. Today, the Canadian Q2 QoQ Annualized GDP recorded upbeat data, reporting 3.7% over 3.0% market hopes. However, the downbeat Canadian July MoM Industrial Product Price and Raw Material Price Index seemed to discourage the CAD bulls. While, on the USD-side, July PCE data stood in-line with the market expectations. In the interim, July Personal Spending rose by 0.3%, and Personal Income slumped by 0.4%, over the respective previous statistics.

USDCAD 1 Day 30 August 2019

Nevertheless, after a small dip inside the underlying red Ichimoku Clouds, the pair ensured to stay above the Clouds. Somehow, the ADX technical indicator was pointing below 20 mark, allowing the price actions to stay range-bound throughout the day.

The article was written by Bharat Gohri, Chief Market Analyst at easyMarkets

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.