EUR/USD – Limited Movement on Tepid Euro Numbers

EUR/USD has started the week quietly, as the pair trades in the mid-1.27 range in Monday's European session. In economic news, German PPI came in at 0.0%, while Eurozone Current Account posted a surplus of EUR 18.9 billion. There are no US data releases on Monday.

The markets were greeted with lukewarm Eurozone data on Monday morning. Inflation remains anemic, as German PPI came in at a flat 0.0%, shy of the estimate of 0.1%. The indicator has not produced a gain since December, as Germany, the Eurozone locomotive, continues to struggle with a lack of inflation. Eurozone Current Account, which is closely linked to currency demand, posted a surplus of EUR 18.9 billion, little changed from the previous release of EUR 18.7 billion. This reading disappointed the markets, as the estimate stood at EUR 21.3 billion.

US releases wrapped up the week on a high note, as UoM Consumer Sentiment climbed to 86.4 points, its highest reading since July 2007. The markets had expected a reading of 84.3 points. This indicates that the US consumer remains optimistic about the economy and is not overly concerned about warnings of a global slowdown. On the housing front, Building Permits and Housing Starts met expectations. Strong US employment numbers continue to drive the US recovery, as US job claims dropped to 264 thousand, marking a 14 -year low. The estimate stood at 286 thousand.

EUR/USD for Monday, October 20, 2014

EUR/USD October 20 at 9:10 GMT

EUR/USD 1.2752 H: 1.2778 L: 1.2732

EUR/USD Technical

• EUR/USD has been uneventful in the Asian and European sessions.
• 1.2688 continues to provide strong support.
• 1.2806 is an immediate resistance line. 1.2905 is stronger.
• Current range: 1.2688 to 1.2806

Further levels in both directions:

• Below: 1.2688, 1.2518, 1.2407, 1.2286 and 1.2144
• Above: 1.2806, 1.2905, 1.2984 and 1.3104

OANDA's Open Positions Ratio

EUR/USD ratio is pointing to gains in long positions on Monday. This is not consistent with the lack movement we're seeing from the pair. The ratio has a majority of long positions, indicative of trader bias towards the euro breaking out and moving higher.

EUR/USD Fundamentals

• 6:00 German PPI. Estimate 0.1%. Actual 0.0%.
• 8:00 Eurozone Current Account. Estimate 21.3B. Actual 18.9B.
• 10:00 German Buba Monthly Report.
• 14:00 US FOMC Member Jerome Powell Speaks.

*All release times are GMT

*Key releases are highlighted in bold.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.