Euro Nosedives Despite Solid German Retail Sales
Euro traded lower during the London session against the US dollar and even better than expected economic releases in the Euro area failed to help the EURUSD pair.
In Australia, the RBA Interest Rate Decision was announced by the Reserve Bank of Australia in which the market was expecting a rate cut, but the central bank made no change in rates.
Swiss Gross Domestic Product, released by the State Secretariat for Economic Affairs SECO registered an increase of 0.6% in the fourth quarter of 2015, compared to the forecast of 0.3%.
German Retail Sales released by the Statistisches Bundesamt Deutschland registered a rise of 2.9% in January 2015 whereas the market was expecting it be around 0.4%.
Spanish Unemployment Survey released by the Spanish Government registered a reading of -13.5K, which was better than the forecast of 10.5K.
Euro zone Producer Price Index (PPI) released by the Eurostat registered a decline of 0.9% in January 2015, compared to the expectation of a 0.7% decline.
In terms of the yearly change, the Euro zone PPI fell by 3.4% in January, compared to the expectation of a 3% decline.
German Retail Sales
Earlier today during the London session, the German Retail Sales was released by the Statistisches Bundesamt Deutschland. The market was expecting it to rise by 0.4% in January 2015, compared to the preceding month. However, the outcome was better than the forecast, as the German retail sales increased by 2.9%. This was definitely way above the expectation and should have helped the EURUSD pair in the near term.
When we consider the yearly change, then the German retail sales registered a massive increase of 5.3% whereas the market was expecting a rise of 2.7% in January 2015, compared to the same month a year ago.
Furthermore, the Euro zone Producer Price Index (PPI) was also released by the Eurostat, which represents the change in prices received by domestic producers of commodities in all stages of processing. The outcome was a disappointing one, as the Euro zone PPI decreased by 0.9% in January 2015, compared to the expectation of a 0.7% decline. Moreover, when we consider the year-over-year change, then the PPI decreased by 3.4% in January, compared to the expectation of a 3% fall.
In the Switzerland today the Gross Domestic Product was released by the Swiss Statistics. The market was expecting a rise of 0.3% in the fourth quarter of 2014, compared to the same quarter of the preceding year. However, the outcome was above the forecast, as the Swiss GDP managed to increase by 0.6% in Q4 2014. Moreover, there was a revision as well for the last reading from 0.6% to 0.7%.
Technical Outlook – Swiss franc
There was no hope for the Swiss franc buyers, as even with the better than expected Swiss GDP release buyers failed to lift the Swiss franc. The USDCHF pair was seen trading higher towards the 0.9600 level earlier during the London session and looks set for more gains.
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UK Nationwide Housing Prices highlighting the value of the houses prices in UK and indicate current movements in the housing market posted an increase of 1% in April, compared to the preceding month.
US dollar continued to weaken against a few currencies and managed to recover some ground against currencies like the Euro and the British Pound
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