After a quite kick start in the week for the FOREX markets, all the focus has been concentrated in the Euro and the related data to be released later today.
EUR/USD attempted a bounce from its recent lows yesterday, trading as high as 1.2717 but it slowly retreated back below 1.27. The Euro is still weighted by increased uncertainty surrounding a proposed referendum in Catalonia, and the weak data stemming from the Eurozone. Yesterday German inflation was steady at 0.8%, with the focus now turned to Eurozone data. If the data to be released later this morning, appear weaker than expected for the Euro, we would expect a break below the 2-years low support level at 1.2659, and to open the way towards the next technical support level May’s 2012 low at 1.2286.
German unemployment data for September will be released at 07:55 GMT, and Eurozone inflation September data at 09:00 GMT. Later this afternoon Canadian GDP figures will be announced for the month of July at 12:30 GMT, and U.S. consumer confidence for September at 14:00 GMT.
All the data of course might give a small impact on the markets if the traders fear of aggressive positioning ahead of the U.S. Non Farm Payrolls that will be released on Friday.
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