Better than expected German Ifo data supported exchange rate Euro to Dollar to edged higher in European session on Nov 24-2014.
German Ifo business climate rose to 104.7 in November versus expectation of 103.0. Current assessment gauge rose to 110..0 versus expectation of 108.0. Expectations gauge rose to 99.7 versus consensus of 95.5. The gauges ended six straight months of decline. Ifo noted that "the downturn in the German economy has ground to a halt for the moment at least." Ifo economist noted that it's too early to confirm a change in trend but the results was nonetheless a "positive signal".
ECB governing council member Ewald Nowotny said that Q1 of year would be "too early" for additional easing from the central bank. Meanwhile, he hailed that the European Commission is "setting the right priorities by proposing an investment package combined with regulatory reforms targeted toward fostering smart infrastructure, education, research and energy."
German Ifo business climate rose to 104.7 in November versus expectation of 103.0. Current assessment gauge rose to 110..0 versus expectation of 108.0. Expectations gauge rose to 99.7 versus consensus of 95.5. The gauges ended six straight months of decline. Ifo noted that "the downturn in the German economy has ground to a halt for the moment at least." Ifo economist noted that it's too early to confirm a change in trend but the results was nonetheless a "positive signal".
It affected the exchange rate Euro to Dollar to move higher.
In the exchange rate Euro to Dollar, offers at 1.2405-10 were filled but sell orders are still noted from 1.2420 all the way up to 1.2450, more sellers are reported exchange rate Euro to Dollar at 1.2465-70 and 1.2490-00.
Exchange rate Euro to Dollar shows selling interest is seen at 1.2530-40, 1.2570-80 and in good size at 1.2600 with more stops placed above 1.2605.
On the downside of exchange rate Euro to Dollar, bids are raised to 1.2370-75 and 1.2355-60 with more stops placed below barrier at 1.2350, more buy orders are expected at 1.2300-10 and 1.2275-80, followed by mixture of bids and stops at 1.2250.
Exchange rate Euro to Dollar shows selling interest is seen at 1.2530-40, 1.2570-80 and in good size at 1.2600 with more stops placed above 1.2605.
On the downside of exchange rate Euro to Dollar, bids are raised to 1.2370-75 and 1.2355-60 with more stops placed below barrier at 1.2350, more buy orders are expected at 1.2300-10 and 1.2275-80, followed by mixture of bids and stops at 1.2250.
ECB governing council member Ewald Nowotny said that Q1 of year would be "too early" for additional easing from the central bank. Meanwhile, he hailed that the European Commission is "setting the right priorities by proposing an investment package combined with regulatory reforms targeted toward fostering smart infrastructure, education, research and energy."
Factors affecting exchange rate Euro to Dollar.
- The advance GDP growth for 3Q14, due Tuesday, should stay largely unchanged at +3.5% saar. While consumption and inventories might be revised higher, these should be offset by downward revisions to exports and construction. The Conference Board consumer confidence index, also due Tuesday, should remain near last month's post-recession high of 94.5. On Wednesday, the final estimate of the University of Michigan consumer sentiment would be released, together with personal income and consumption data for October. Meanwhile, durable goods orders, weekly jobless claims report and October pending home sales would also be released on Wednesday.
- In Europe, we will get the Eurozone's flash CPI report on Friday. Headline inflation probably slipped to +0.3% y/y in November while core inflation stayed unchanged at 0.7%. The ECB's money and credit data for October and the EC economic sentiment index would be due Thursday. In the UK, we would have the second GDP reading for 3Q14 on Wednesday. In Asia, the BOJ would release the meeting minutes later today. On Friday, a number of October economic data, including CPI, IP, employment, household spending and construction data for the third largest economy would be released. Let us see the effect of it on the exchange rate Euro to Dollar.
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