Wednesday, Dec 17, 08:43 GMT
EUROPEAN Trading Newsletter
To Get Started
- Webinar Videos: Trading Range bound and Trending Markets by Adam Rosen
- FED Meeting preview in our Economic Calendar
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Forex Blogs
Forex Trading Today: Did the Fed Shock?... Not in My View and Here is Why by Tim Salem
Well... we have it! The all out Media "feeding frenzy" over the "shocking and surprising" FOMC Rate Cut yesterday. "Quantitative Easing" aside, the window of a "loose" benchmark of 0%−.25% really should not be a surprise in this case.
1st on Forex: FOMC and Treasury: Help is Here - On The Way – Standing By by Jerry Furst
The Advisor Weblog: FOMC Decision by Valeria Bednarik
Live Sessions Schedule
FX Instructor Live Trading Room
Expert: Mark De La Paz
Start: Wed, Dec 17, 10:00 GMT
Sponsored by: 
Type of Session: Webinar
Trading Break Out's And Other Market Views
Expert: Phil Newton
Start: Wed, Dec 17, 11:00 GMT
Sponsored by: 
Type of Session: Webinar
| Sponsored by | ||||
| Wed, Dec 17, 10:00 GMT | FX Instructor Live Trading Room | Mark De La Paz | WBN | |
| Wed, Dec 17, 11:00 GMT | Trading Break Out's And Other Market Views | Phil Newton | WBN | |
| Wed, Dec 17, 12:00 GMT | Tracking the forex market together / Part I  | Dr.S.Sivaraman | WBN |  |
| Wed, Dec 17, 14:00 GMT | Main Fundamental theme in the Currency market | Terri Belkas | WBN |  |
Current Session: Europe
Dollar Selloff Continues as Global Markets Respond to Fed's Cut
ActionForex.com − Dollar's sell off continues as global markets respond to Fed's historical rate cuts to bring the federal funds rate down from 1.00% to a target range of 0−0.25% and will keep rates at this "exceptionally low levels" for some time to come. In a rather lengthy paragraph, Fed explained the quantitative easing measure that it will adopt including "a number of open market operations and other means that sustain the size of the Federal Reserve's balance sheet at a high level."
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EUR/USD
EUR: Attempt longs at 1.4035 but be prepared to add to 1.3800 by Mizuho Corporate Bank
‘See how they run!' Reversing October's drop as quickly as we moved on the way down, reversing 50% of previous declines as many re−think the outlook for the US dollar. More short−covering is likely above 1.4200 and a squeeze to 1.4600 before year−end is possible (at which point we favour several weeks of consolidation).
GBP/USD
Daily Market Commentary − US Dollar: Hits 2 Month Low After FED Cuts Rates to 0.25% by GFT (Global Forex Trading)
The currency in play for the next 24 hours will be the GBP/USD. Tomorrow, Bank of England is set to release its minutes from previous meeting along with Jobless Claims at 4:30AM EST or 9:30GMT.
Analyst Sentiment Index (ASI)
Analysts Sentiment Index - EUR/USD
**Source : ActionForex.com, CMS Forex, Danske Bank A/S, FXstreet.com, i-knowindices.com, Mizuho Corporate Bank, MolFX - Management
[ View ASI page ] [ View EUR/USD page ]
Charting the Market Movers
USD JPY, Hourly
GBP USD, Hourly
Top Market Movers Preview
EMU CONSUMER PRICE INDEX
| Date (GMT) | Event | Cons. | Previous | |
| Dec 17 | 10:00 | Consumer Price Index − Core (YoY) | 1.9% | 1.9% |
| Dec 17 | 10:00 | Consumer Price Index (MoM) | -0.5% | 0.0% |
| Dec 17 | 10:00 | Consumer Price Index (YoY) | 2.1% | 2.1% |
Friday Notes - Let's talk about European deflation by HVB Group
Eurozone inflation slowed more than expected in November, coming in at 2.1% versus the previous 3.2%. We see the risk of a moderate upward revision in the final release. Certainly, energy was the main driver of the inflation deceleration, thanks also to a positive base effect.
[ Full Story ]Top Market Movers Review
Germany CONSUMER PRICE INDEX
| Date (GMT) | Event | Actual | Cons. | Previous | |
| Dec 17 | 07:00 | Consumer Price Index (YoY) | 1.4% | 1.4% | 2.4% |
| Dec 17 | 07:00 | Consumer Price Index (MoM) | -0.5% | -0.5% | -0.2% |
DATA SNAP: German Final Nov CPI −0.5% On Month, +1.4% On Yr (Dow Jones)
German annual consumer prices in November fell 0.5% on the month, and rose only 1.4% on the year, marking the fourth month in a row of weaker inflation rates, final data released by the federal statistics office Destatis confirmed Wednesday.
[ Full Story ]- TABLE−German Nov HICP revised down tenth of a point (Thomson Financial News)
- Consumer prices continue easing in Germany in November (FXstreet.com)
- Germany Consumer Price Index declines 0.5% in Nov; 1.4% up year on year (FXstreet.com)
Daily Forex Technical Report − Dollar Selloff Continues as Global Markets Respond to Fed's Cut by ActionForex.com
US FED INTEREST RATE DECISION
| Date (GMT) | Event | Actual | Cons. | Previous | |
| Dec 16 | 19:15 | Fed Interest Rate Decision | 0.25% | 0.50% | 1.00% |
US: FOMC Instant Insight − Fed Cuts Interest Rates to 0.25% and Formally Enters QE by GFT (Global Forex Trading)
The Federal Reserve cut interest rates by 75bp to a range of 0 to 0.25 percent, the lowest level that this generation has ever seen. In our FOMC preview, we talked about how the Fed may consider adopting a BoJ style rate cut that takes interest rates somewhere between 0.25 and 0 percent. Although that was exactly what we saw today, we expected it to happen in March and not December.
- UPDATE 2−Fed move aimed at spreads, not deflation−official (Thomson Financial News)
- US SWAPS−Spreads contract after Fed drops rates near zero (Thomson Financial News)
- UPDATE 1−US deflation still not major concern−Fed official (Thomson Financial News)
Daily Forex Technical Report − Dollar Selloff Continues as Global Markets Respond to Fed's Cut by ActionForex.com
Market Session Recaps - Asia Session by FOREX.com
Daily Forex Outlook - New World Wednesday as US cuts rates to 0.25% by Easy Forex
Economic Events
| Date (GMT) | Country | Event | Actual | Cons. | Previous | |
| Dec 17 | 05:00 | JP | Coincident Index (Oct) | 97.7% | 100.9% | |
| 05:00 | JP | Leading Economic Index (Oct) | 85.2 | 89.4 | ||
| 07:00 | DE | Consumer Price Index (MoM) (Nov) | -0.5% | -0.5% | -0.2% | |
| 07:00 | DE | Consumer Price Index (YoY) (Nov) | 1.4% | 1.4% | 2.4% | |
| 09:30 | UK | Average Earnings excluding Bonus (3Mo/Yr) (Oct) | 3.5% | 3.6% | ||
| 09:30 | UK | Average Earnings including Bonus (3Mo/Yr) (Oct) | 3.2% | 3.3% | ||
| 09:30 | UK | Bank of England Minutes | ||||
| 09:30 | UK | Claimant Count Rate (Nov) | 3.1% | 3.0% | ||
| 09:30 | UK | ILO Unemployment Rate (3M) (Oct) | 6.0% | 5.8% | ||
| 09:30 | UK | Jobless Claims Change (Nov) | 45K | 36K | ||