Important economic data in Europe published today – Market Overview

Important economic data in Europe published today – Market Overview

In a technical rebound, EURUSD and EURGBP fully grasp the ECB statements.

On one hand, the PMI of services for January, which has risen slightly compared to expectations, 45.5 vs 45 expected, data that confirms that the European services sector remains at least, although still below the growth threshold of this index located at 50.

And on the other hand, the inflation data. This is more relevant it is the main objective within the European Central Bank mandate. The ECB's monetary policy aims to achieve an inflation level close to 2%, but not higher. For this, it deploys all its instruments to stimulate the economy such as interest rates, in some cases negative, and its program of purchase of assets.

The first reading of the data published today is positive due to the rise experienced in the IPC data, which for January has risen to 0.9% year on year from negative values ​​last month at -0.3%.

But the data has a drawback, which is that the increase is motivated by the end of the VAT cut that Germany had imposed last year as an additional stimulus measure to the economy and the introduction of a new tax on CO2 emissions. Which has an immediate raise effect on prices.

Therefore, it is a rise in prices motivated by tax increases and not by a rebound in domestic demand. Consequently, market analysts' general opinion is that the ECB is going to downplay this rise in inflation data and will not have it into consideration when setting the monetary policy. It will be necessary for these price increases to be sustained over time to affect the ECB decisions. The figures released in the following months will be essential and taken into account by market participants.

A rebound in inflation, such as today's, would have been interpreted by the market as positive for the Euro under normal circumstances as it would anticipate an upward normalization of interest rates. Still, this time the effect has been nil.

European Currencies

EUR /USD remains under pressure trading at the lows of the day around 1.2020. The pair has confirmed the downward break of the primary support located at 1.2065 daily close below this level. From a technical analysis perspective, it is in a downtrend with the first target around 1.1950.

The same happens in the price against the Pound.

EUR/GBP broke the support at 0.8866 and from a technical point of view has a clear path to the zone between 0.8700 and 0.8770. In this case, the RSI indicator is in the area close to the oversold on a daily chart, although it does not yet show any signs of exhaustion or divergences.

Sources: Bloomberg, Investing.com.

Maklumat/penyelidikan ini disediakan oleh Miguel Ruiz (“tpenganalisis penyelidikan”) dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.

JME Financial Services (Pty) Ltd, beroperasi sebagai ZA.CAPEX.COM, bertindak sebagai perantara antara pelabur dan Magnasale Trading Ltd, rakan kontrak untuk perbezaan yang dibeli oleh pelabur melalui ZA.CAPEX.COM, yang diberi kuasa dan dikawal selia oleh Cyprus Securities. dan Suruhanjaya Pertukaran dengan nombor lesen 264/15. Magnasale Trading Ltd adalah prinsip utama CFD yang dibeli oleh pelabur.