Euro May Begin Upward Correction on German ZEW Data
Talking Points:
- Euro May Correct Higher on Upbeat German ZEW Survey Outcome
- NZ Dollar Sold in Asia as Housing Data Dents RBNZ Rate Hike Bets
- See Economic Releases on Your Charts with the DailyFX News App
Augusts’ German ZEW Survey of investor confidence headlines the economic calendar in European hours. The forward-looking Expectations index is expected to print at 17.0, marking the lowest reading since December 2012. Eurozone economic news-flow has been improving relative to consensus forecasts over the past three weeks, opening the door for an upside surprise.
Speculative net-short Euro positioning hit a two-year high last week according to the CFTC’s Commitment of Traders report. In the absence of a deeper push into dovish territory from the ECB at last week’s policy meeting, a corrective upswing seems reasonable before selling pressure returns in force and an upbeat ZEW outcome may prove to be just the spark needed to set off profit-taking.
The New Zealand Dollar underperformed in overnight trade, falling as much as 0.3 percent on average against its leading counterparts. The currency sank to session lows after data from REINZ showed house sales fell 13 percent year-on-year in July. The Kiwi’s drop followed a decline in New Zealand’s front-end bond yields, pointing to fading RBNZ rate hike bets.
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Asia Session
|
GMT |
CCY |
EVENT |
ACT |
EXP |
PREV |
|
22:00 |
NZD |
ANZ Truckometer Heavy (MoM) (JUL) |
2.6% |
- |
-0.7% |
|
23:01 |
GBP |
BRC Sales Like-For-Like (YoY) (JUL) |
-0.3% |
0.9% |
-0.8% |
|
23:50 |
JPY |
Domestic CGPI (MoM) (JUL) |
0.3% |
0.4% |
0.2% |
|
23:50 |
JPY |
Domestic CGPI (YoY) (JUL) |
4.3% |
4.4% |
4.6% |
|
1:30 |
AUD |
NAB Business Conditions (JUL) |
8 |
- |
2 |
|
1:30 |
AUD |
NAB Business Confidence (JUL) |
11 |
- |
8 |
|
1:30 |
AUD |
House Price Index (QoQ) (2Q) |
1.8% |
1.0% |
1.5% |
|
1:30 |
AUD |
House Price Index (YoY) (2Q) |
10.1% |
9.3% |
10.9% |
|
1:30 |
AUD |
Credit Card Purchases (A$) (JUN) |
23.1B |
- |
22.9B |
|
1:30 |
AUD |
Credit Card Balances (A$) (JUN) |
49.9B |
- |
49.7B |
|
2:30 |
NZD |
REINZ House Price Index (MoM) (JUL) |
-0.7% |
- |
-0.3% |
|
2:30 |
NZD |
REINZ House Sales (YoY) (JUL) |
-13.0% |
- |
-6.1% |
|
2:30 |
NZD |
REINZ House Price Index (JUL) |
3885.5 |
- |
3913.3 |
|
4:30 |
JPY |
Capacity Utilization (MoM) (JUN) |
-3.3% |
- |
-0.7% |
|
4:30 |
JPY |
Industrial Production (MoM) (JUN F) |
-3.4% |
- |
-3.3% |
|
4:30 |
JPY |
Industrial Production (YoY) (JUN F) |
3.1% |
- |
3.2% |
European Session
|
GMT |
CCY |
EVENT |
EXP |
PREV |
IMPACT |
|
9:00 |
EUR |
Eurozone ZEW Survey (Econ. Sentiment) (AUG) |
- |
48.1 |
Medium |
|
9:00 |
EUR |
German ZEW Survey (Current Situation) (AUG) |
54.0 |
61.8 |
Medium |
|
9:00 |
EUR |
German ZEW Survey (Econ. Sentiment) (AUG) |
17.0 |
27.1 |
Medium |
Critical Levels
|
CCY |
Supp 3 |
Supp 2 |
Supp 1 |
Pivot Point |
Res 1 |
Res 2 |
Res 3 |
|
EURUSD |
1.3326 |
1.3360 |
1.3372 |
1.3394 |
1.3406 |
1.3428 |
1.3462 |
|
GBPUSD |
1.6735 |
1.6760 |
1.6773 |
1.6785 |
1.6798 |
1.6810 |
1.6835 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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