German inflation slows on weak price pressures in services
German annual inflation slowed by more than expected in August to within the European Central Bank’s price stability range, data showed on Thursday, supporting the ECB’s gradual approach to winding down its monetary stimulus. German consumer prices, harmonized to make them comparable with inflation data from other European Union countries, rose by 1.9 percent year-on-year after an increase of 2.1 percent in the previous month, the Federal Statistics Office said. This was below the average reading of 2.0 percent in a Reuters poll of analysts. The ECB targets inflation of close to but below 2 percent. Read More @ https://www.reuters.com/article/us-germany-economy-inflation-ecb/german-inflation-slows-to-ecb-target-in-august-idUSKCN1LF1FT
Euro zone economic sentiment dips for eighth straight month in August
Euro zone economic sentiment edged lower for an eight consecutive month in August, pulled down by less optimism in industry and services, a monthly survey by the European Commission showed on Thursday. The Commission survey showed the economic sentiment indictor for the 19 countries sharing the euro currency eased to 111.6 points in August from 112.1 in July, continuing a downward trend started since a peak of 115.2 last December. Separately, the Commission’s business climate indictor, which helps identify the phase of the business cycle, fell to 1.22 in August from 1.30 in July, following a similar downward path from a peak of 1.63 in January. Read More @ https://www.reuters.com/article/us-eurozone-economy-sentiment/euro-zone-economic-sentiment-dips-for-eighth-straight-month-in-august-idUSKCN1LF0TN
The silver tsunami is almost upon us – The growth in the Eurozone’s labour force is ending, adding yet more challenges to numerous economies
When we talk about whether the Eurozone economy is in a soft patch or the startof a protracted downswing, it’s often overlooked that several structuralchallenges are threatening to lower potential growth. Ageing is clearly one of them. Focusing on developments of the labour force as opposed to overall population growth shows the Eurozone workforce will hit retirement later than some expect. But rest assured – it will hit it. Just look around, the Eurozone is in the middle of the grey revolution. The demographic change statisticians have been predicting for a long time, has already started. According to Eurostat estimates, the working age population started to shrink in 2009 and these estimates already take into account some continuing immigration over the next few decades. Read More @ https://think.ing.com/uploads/reports/Eurozone_demographics_280818_FC_BC_%28005%29.pdf
WHAT IS THE USD SAYING?
USD is at standstill and awaits fresh news – today President Donald will continue to put pressure on China, also the NAFTA deal with Mexico and Canada is still on-going and awaits new headlines of the outcome. We are expecting the USD to move down to 93.50 by next week.
TODAY’S NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES.
- 7.30am – Japan will release their CPI – expected to be good. We maintain Buy for JPY.
- 9.00am – China will release their manufacturing PMI – expected to be good – We Buy AUD.
- 2.00pm – German will release their Retails sales and is expected to be weak after yesterday slowdown on the CPI.
- 2.45pm – France will release their CPI – expect volatility.
- 5.00pm – EURO will release their CPI data together with Italy – we expect no changes to the data – expect volatility. We move from SELL to BUY for EURO.
- 10.00PM – US will release their Consumer sentiment – Survey of about 500 consumers which asks respondents to rate the relative level of current and future economic conditions and inflation expectation – Survey of about 500 consumers which asks respondents where they expect prices to be 12 months in the future – expect volatility for the USD. We expect the USD to slide.
The market uncertainty continues – DOW falls almost 200 point last night as the fear comes back to wall street. Be cautious and always maintain good money management.
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