Eurozone in Recession, Yen Damaged, US Jobless & CPI Next
JPY falls further; European GDP above expectations; UK retail sales disappointed. Busy session ahead includes CPI, jobless claims; empire state and Philly fed manufacturing and Bernanke's speech. 1 of 2 USDJPY Premium Insights and the remaining CADJPY hit all targets. 5 new charts were added to last nights Premium Insights, including quarterly chart of USDJPY. Timing the new and existing EURUSD insights as well as new GBPUSD ideas. See more below.
The common currency pushed higher on rumor that Spain would ask the IMF for a credit line instead of requesting an official bailout. Spanish economy minister rejected this notion and added that Spain has not decided whether to request ECB aid.
JPY pairs continue to push higher on comments from Japan's main opposition leader Shinzo Abe who wants to work with the BOJ to reverse the trend of JPY strength and who also suggested that the BOJ could set interest rates below zero to enhance lending. Abe is leading in polls and could become the next PM.
A slew of Q3 GDP data was released during the European session. French and German GDP both rose 0.2% which was better than analysts expected. On the other hand Italian GDP contracted -0.2% and the whole Eurozone economy fell 0.1%. Nevertheless even these results were slightly above expectations. Eurozone CPI remained steady at 2.5% and the core stayed at 1.5%
UK retailers experienced the largest sales decline in six months as the volume fell 0.8% in October after growing 0.5% in the prior month. GBPUSD initially weakened to 1.5827 but quickly recovered and trades around 1.5850. EURGBP trades higher around 0.8055.
Busy US session kicks off at 8:30 am ET with CPI that is expected to rise to 2.1% in October from previous 2.0% y/y. The core figure is seen steady at 2.0%. Jobless claims are seen higher at 372K from last week's 355K and empire state manufacturing is seen lower in November at -7.2 from previous -6.2. Philly FED manufacturing is due at 10:00 am and it is anticipated to decline to 1.1 from previous 5.7.
Markets are also awaiting the FED chairman Bernanke's speech on housing and mortgage markets in Atlanta that is scheduled to start at 1:20 pm ET.
5 new charts were added to last nights Premium Insights, including quarterly chart of USDJPY. Timing the new and existing EURUSD insights as well as new GBPUSD ideas. Direct Access to today's Premium Insights is found here: http://ashraflaidi.com/products/sub01/access/?a=694 Non- subscribers can have a free trial here: http://ashraflaidi.com/products/
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