EURUSD:
Germany’s Harmonised Index of Consumer Prices (HICP) was released on Thursday, aligning with market expectations. This outcome was anticipated, as it was not preliminary data and typically remains stable unless there is a significant economic downturn.In December, retail sales data showed a slowdown, leading to a 0.4% contraction for the month. Markets had predicted a decline to 0.6%, down from a revised 0.8% in the previous month. Core retail sales, excluding auto spending, rose to 0.4% m/m from 0.2%, meeting analysts’ average forecasts.The mixed data did not cause significant changes in investor sentiment.
There will be few important data releases this coming Friday, with HICP inflation data for the broad pan-European economic area expected to confirm a small rise to 2.8% y/y from 2.7%. In the US, data on construction starts, building permits and industrial production for December are expected, which will be relatively close to the previous figures and are unlikely to cause significant market volatility on their own.
Trading recommendation: We follow the level of 1.0350, if it is fixed above we consider Buy positions, if it bounces back we consider Sell positions.
Origin: FreshForex
