We have two very important pieces of news ahead of
us today. The first piece is coming from Europe and that is German Consumer
Price Index data (CPI). Europe has been showing very poor results economic
results lately and this inflation number might cause strong decline in Euro
pairs. If the news is worse than expected Euro weakness will definitely spill
to Swiss Franc pairs too. I am looking for possibilities to short eur/gbp if
the market starts moving the pair down. The release is scheduled at 12:00 GMT.
The second piece of news comes from Canada and that
is Canada Gross Domestic Product. Expectations are weaker than last month, but
as veteran traders say: ‘buy the rumor and sell the fact’. We might reverse the
saying. The number might be much better than expected. Then, CAD would rise. I
am currently looking at aud/cad currency pair and see that it has formed a nice
bearish technical structure. It means I am considering selling the pair if the
news pushes it below current support price level of 0.9675. However, Canadian
dollar looks a bit weak against other European currencies. So, I am going to
place a very small order for selling.
Let’s wait and see what the future brings.
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