August 7, 2012
Consolidation is the name of the game as EUR/USD moved inside a 50-pip range, with support at 1.2350 and resistance at the 1.2400 handle, yesterday. EUR/JPY, on the other hand, crawled downwards and closed 25 pips down from its 97.20 open price.
Only the Sentix investor confidence index was released from the euro zone yesterday and the report came in slightly better than consensus. The reading fell for the fifth straight month in August as it slipped from -29.6 to -30.3, just a few points above the expected -30.8 reading.
There aren't any top-tier reports due from the euro zone today but we do have a few medium-tier releases that could still have an impact on euro pairs' price action. Italy is set to release its industrial production data at 8:00 am GMT and its preliminary GDP reading for the second quarter of 2012 at 9:00 am GMT. Then, at 10:00 am GMT, Germany will print its factory orders data which could show a 0.9% drop.
If you're planning to trade the euro today, make sure you keep an eye out for these releases because worse than expected figures could force the euro to head south while stronger than expected results could trigger euro buying. Stay on your toes!
"The only cable I watch is the pound baby."