If I were to pick one letter in the alphabet to describe EUR/USD’s price action yesterday, it would be the letter “V.” EUR/USD started the day at 1.2945, fell to a fresh 11-day low at 1.2883, and then rallied back up near its open at 1.2936.
On the economic front, the Gfk Consumer Climate survey and the Spanish unemployment report were released. The Gfk Consumer Climate survey came in slightly better than expected as it printed a 6.3 reading versus the 5.9 forecast. The previous month’s 5.9 figure was also revised higher to 6.1.
Meanwhile, the Spanish unemployment report showed that job market has gotten slightly worse. Now, the percentage of unemployed people is at 25.0%, up from the previous month’s 24.6%.
Up ahead, we’ve got a couple of medium-tier economic releases that could have a significant effect on the euro. For instance, we will see the German Preliminary CPI figures today. It’s predicted to show that the inflation rate in Germany remained flat in October.
Then tomorrow, at 8:00 am GMT, the Spanish GDP for the 3Q 2012 and the German Unemployment Change will both be released. ECB President Mario Draghi will also be making a speech at the same time. On Wednesday, the reports to keep an eye out for are the German Retail Sales report and euro zone’s CPI and unemployment report.
As you can see, there’s a lot on the economic plate this week. This means that you should be extra careful in your trades as sentiment could shift any time. Good luck, homies!