- UK November inflation at 2.1% vs. 2.2% expected
- UK PPI input prices at -0.7% vs. -0.5% expected
- Euro Zone ZEW economic sentiment at 68.3 vs. 60.9 expected/li>
- German ZEW economic sentiment at 62.0 vs. 55.3 expected
The London session turned out to be bearish for the European currencies as reports from the U.K. missed expectations while positive reports from the euro zone failed to inspire rallies.
Consumer prices in the U.K. grew by 2.1% in November, its slowest annualized rate since November 2009. Not surprisingly, Cable dropped below 1.6300 at the release of the report as it lessens the barrier for the BOE to continue its stimulus programs.
The euro also became a target for the bears. Germany’s economic sentiment report printed its highest reading since April 2006 but failed to catch the currency bulls’ attention. Does this mean that the euro is looking at short-term tops against its counterparts?
At 2:30 pm GMT we’ll see Canada’s manufacturing sales data as well as the U.S. inflation numbers. Then, at 4:00 pm GMT the NAHB housing market index will be printed. Last but definitely not the least, BOE Governor Mark Carney will take center stage at 4:30 pm GMT.
Watch these reports closely in case they become catalysts for breaks in intraday ranges!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!