All Eyes On Eurozone GDP
Octa | Oct 31, 2017 03:24AM ET
Eurozone data will dominate headlines on Tuesday, culminating in a quarterly GDP report that is expected to reaffirm the region’s healthy recovery. The European Commission’s statistical agency will release preliminary third quarter GDP figures at 10:00 GMT. The report is expected to show quarterly growth of 0.5%, following a gain of 0.6% in April-June. In annualized terms, this should translate into a 2.4% growth pace.
At the same time, the European government will report on unemployment and consumer inflation. Joblessness in the 19-nation euro is forecast to fall to 9% in September from 9.1% the previous month.
Meanwhile, the consumer price index (CPI) is projected to fall to 1.4% annually in October, down from 1.5% the previous month. Italy will also release its latest batch of inflation data on Tuesday, while Greece will report on retail sales for the month of August.
Earlier in the day, the Bank of Japan (BOJ) voted to keep monetary policy on hold in a decision that was widely expected by market participants. The BOJ has held its main interest rate at -0.1% since early 2016 in support of its growth and inflation targets. With Prime Minster Shinzo Abe winning re-election in convincing fashion, investors can expect Abenomics to continue well into the future.
USD/JPY
The USD/JPY touched a session low of 112.95 on Tuesday, but quickly recovered to settle around 113.14. The pair has enjoyed a solid uptrend over the past two weeks as the US dollar asserted its confidence on the global currency market. However, the pair has declined since Friday’s three-month high above 114.00. The immediate support for the USD/JPY is likely situated around 112.90. On the opposite side of the ledger, immediate resistance is likely to be found around 114.00.
EUR/USD
The euro has been under pressure since the European Central Bank (ECB) announced it would likely extend its record bond-buying program beyond September 2018. The decision triggered a 200-pip decline for the EUR/USD. As of Tuesday, the pair still hadn’t recovered and was trading around 1.1636. The outlook remains tilted to the downside, as the euro bulls contend with a brewing crisis in Spain over Catalan independence. Levels to watch for the EUR/USD include 1.1685 on the upside and 1.1595 on the downside.
GOLD
Precious metals have suffered a series of sharp declines over the past two weeks, with gold prices falling to their lowest level since July. Prices were little changed around $1,275 on Tuesday. The bulls are eyeing a close above $1,285 for a signal of upside momentum. On the flipside, the bears are keeping a close eye on $1,265. A dip below that level could expose bullion to heavier losses over the short term.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.