It’s a Busy Day Ahead on the Data Front and It’s Departure Day for Britain
For the Japanese Yen
January inflation figures kicked things off this morning. Japan’s core annual rate of inflation softened from 0.8% to 0.7% in January. Economists had forecast for inflation to hold steady at 0.8%.
For the EUR
It’s a busy day ahead on the economic calendar. Key stats due out of the Eurozone include Germany and French consumer spending numbers and the Eurozone’s 4th quarter GDP numbers. Today’s figures will shed more light on how the economy performed and whether there are any more cracks at the turn of the year.
Outside of the numbers, any shift in sentiment towards the coronavirus will also influence on the day.
For the Pound
After the BoE vote count that failed to meet market expectations on Thursday, the focus will return to Brexit.
It’s Britain’s last day as a member of the EU and the Establishment failed in its quest to reverse Britain’s desire and perseverance to leave.
EZ inflation and GDP preview: Downbeat figures could trigger the next leg down for EUR/USD
Scenarios for EUR/USD
While there are many permutations with two simultaneous publications, three general scenarios await traders
1) As expected: If Core CPI slows to 1.2% and annual GDP to 1.1%, the pressure on the euro will likely continue. The probability is high as substantial surprises are uncommon in these figures.
2) Weaker than expected: A significant miss in underlying inflation or a combination of a minor shortfall in both figures could send EUR/USD significantly lower, accelerating the trend.
3) Better than expected: A double beat or a surprising rise of Core CPI to 1.4% would send euro/dollar higher, but headwinds could limit these gains.
According to Trading Central (3rd party RIA) the EURUSD could be heading DOWN to 1.0880 if it does not go ABOVE 1.1120
* Past performance is not a guarantee of future performance
https://europefx.tradingcentral.com/Product?PK_ANALYSE=10595005
| Number of Lots: | Required Margin: | Risk Management (200%): | Potential Profit/Loss 1.0880 |
|---|---|---|---|
| 1 | € 3,333.33 | € 6,666.67 | € 1,359.75 |
| 5 | € 16,666.67 | € 33,333.33 | € 6,798.75 |
| 10 | € 33,333.33 | € 66,666.67 | € 13,597.50 |
| 25 | € 83,333.33 | € 166,666.67 | € 33,993.75 |
| 50 | € 166,666.67 | € 333,333.33 | € 67,987.50 |
According to Trading Central (3rd party RIA) the EURJPY could be heading DOWN to 1.118.20 if it does not go ABOVE 121.30
* Past performance is not a guarantee of future performance
https://europefx.tradingcentral.com/Product?PK_ANALYSE=10591010
| Number of Lots: | Required Margin: | Risk Management (200%): | Potential Profit/Loss 118.20 |
|---|---|---|---|
| 1 | € 3,333.33 | € 6,666.67 | € 1,660.00 |
| 5 | € 16,666.67 | € 33,333.33 | € 8,300.00 |
| 10 | € 33,333.33 | € 66,666.67 | € 16,600.00 |
| 25 | € 83,333.33 | € 166,666.67 | € 41,500.00 |
| 50 | € 166,666.67 | € 333,333.33 | € 83,000.00 |
