The market is waiting today for the release of US Chicago PMI which is expected to come lower again in Jan to 34.2 from 35.1 in December and US University consuming sentiment figures of Jan which is expected to get slightly higher to 56 from 54 in December.
We have had also today the release of US Q4 GDP advanced reading which was expected to be -5.2% and it has come better than expected at just -3.8%. The price deflator of this same quarter has come lower strongly too to -.3% and the market was expected just a decline to 2% from 3.9% in the third quarter showing increasing deflation pressure in US. The single currency was under pressure today after the release of EU flash HICP of Jan which came at just 1.1% y/y from 1.6% a month earlier and the market was waiting for a decline to 1.4%. These declines of inflation rates in EU can encourage the ECB further to cut interest rate putting pressure on the single currency. The cable could come over 1.4 in a profit taken wave which pushed it back above 1.43 after reaching 1.3502 in an increasing optimistic risk apatite wave in the equity markets following the US markets this week amid the approving of Obama's 819b$ rescue plan and the release of fed's US assessment after its meeting earlier this week which has given the market its readiness to buy the long periods issued bonds too in its efforts to stimulate the economy which could push S&P 500 above 875 and Dow above 8300. The FTSEE 100 has followed this same risk confidence wave and it could come above 4200 before peaking out around 4300 again which has put more difficulties in the face of the cable to break above 1.444 again. Best wishes FX Consultant Walid Salah El Din E-Mail: [email protected] http://www.fx-recommends.com --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "forex trading" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/forex-trading -~----------~----~----~----~------~----~------~--~---
