FXstreet.com (Barcelona) - The EUR/USD spiked both ways with such a strong amount of data at the same time, mixing a final reading of EMU CPI for September at 2.6%, instead of the already expected 2.7%, improving sentiment in Germany (ZEW survey) and lower yields of the Spanish bond auction.
The Spanish government sold €4.86B of 12 and 18-month debt, beating the targeted amount of €4.5B. The amount is divided in: €3.4B of 1-year bills at lower yields than the previous auction, 2.823% vs 2.835% (cover 2.71 vs 2.03); €1.46B of 1.5-year cheaper bills than previously, 3.022% vs 3.072% (cover 3.04 vs 3.56).
The ZEW survey for Germany signals improvement in economic sentiment for October, from -18.2 to -11.5, but worsening current situation from 12.6 to 10.0. The EMU September CPI inflation report shows a rising monthly figure of +0.7% (from +0.4%), but unchanged annualized numbers at +2.6% instead of the +2.7% consensus. The Eurozone August trade surplus widened from €7.2B (revised down from €7.9B) to €9.9B (seasonally adjusted) – non-seasonally adjusted figure narrowed from €14.7B (revised down from €15.6B) to €6.6B. The ZEW Survey for the Eurozone points to a rebounding economic sentiment, from -3.8 to -1.4 in October.
After a spike up to 1.3016 and a spike down to 1.2985, the EUR/USD is trying to find some stability around 1.2988. “We continue to suspect that the market will struggle to regain 1.3072. However while under pinned by the 1.2801 3 month uptrend further upside probes remain plausible”, wrote Commerzbank analyst Karen Jones.
The Spanish government sold €4.86B of 12 and 18-month debt, beating the targeted amount of €4.5B. The amount is divided in: €3.4B of 1-year bills at lower yields than the previous auction, 2.823% vs 2.835% (cover 2.71 vs 2.03); €1.46B of 1.5-year cheaper bills than previously, 3.022% vs 3.072% (cover 3.04 vs 3.56).
The ZEW survey for Germany signals improvement in economic sentiment for October, from -18.2 to -11.5, but worsening current situation from 12.6 to 10.0. The EMU September CPI inflation report shows a rising monthly figure of +0.7% (from +0.4%), but unchanged annualized numbers at +2.6% instead of the +2.7% consensus. The Eurozone August trade surplus widened from €7.2B (revised down from €7.9B) to €9.9B (seasonally adjusted) – non-seasonally adjusted figure narrowed from €14.7B (revised down from €15.6B) to €6.6B. The ZEW Survey for the Eurozone points to a rebounding economic sentiment, from -3.8 to -1.4 in October.
After a spike up to 1.3016 and a spike down to 1.2985, the EUR/USD is trying to find some stability around 1.2988. “We continue to suspect that the market will struggle to regain 1.3072. However while under pinned by the 1.2801 3 month uptrend further upside probes remain plausible”, wrote Commerzbank analyst Karen Jones.
