{"id":144177,"date":"2019-03-22T11:59:04","date_gmt":"2019-03-22T15:59:04","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=144177"},"modified":"2019-03-22T11:30:56","modified_gmt":"2019-03-22T15:30:56","slug":"eurusd-below-pre-fed-levels","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/03\/eurusd-below-pre-fed-levels\/","title":{"rendered":"EURUSD Below Pre-Fed Levels"},"content":{"rendered":"
March 22, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

German PMI Falls to Near 6-Year Low<\/strong><\/h2>\n

Earlier, data from Europe saw German and French\u00a0PMIs falling back into contractionary<\/strong>\u00a0levels<\/strong>.\u00a0Germany<\/a>\u2018s Flash manufacturing PMI declined to 44.7, a near 6-year low. Meanwhile, services came out somewhat steady at 54.9.<\/p>\n

Analysts had projected Manufacturing would increase from 47.6 to 48.0. However, expectations were missed on the back of weakness in business activity inflows.<\/p>\n

French Services and Manufacturing PMIs both depreciated into contraction levels at 48.7 and 49.8, respectively. IHS Markit reported that input cost inflation was down for the 3-month period leading to March. In addition, outstanding business deteriorated amid a slowdown in demand and a weakening activity in exports.<\/p>\n

What\u2019s Next for the Day?<\/strong><\/h2>\n

With European data out of the way, market participants can keep an eye on Canada\u2019s CPI inflation and Core Retail Sales.<\/p>\n

Expectations are for Canadian CPI to rise<\/strong>\u00a0from 0.1% in February to 0.6% in March. Keeping in mind the Bank of Canada\u2019s dovish shift earlier this month, pressures on Loonie could be sustained. However, last month\u2019s\u00a0acceleration on airfares\u00a0<\/strong>saw year-on-year inflation ending 2018 at the BoC\u2019s target. With that, economists now expect prices to inflate more than previously anticipated. And that is despite last month\u2019s dive to 1.4% (YoY), that was owed to still-negative gasoline prices.<\/p>

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While the BoC followed the Fed and reiterated a wait-and-see approach,\u00a0Retail Sales expectations for February paint a positive picture<\/strong>. Wage growth supports a better outlook as year-on-year it rose at 1.8% rate, only 10 basis point below November\u2019s figure. A good inflation growth will likely lead to more spending, somewhat justifying analyst expectations. However, a 0.2% rise from a recessionary -0.5% may be quite a jump for the core figures.<\/p>\n

US Existing Home Sales Expected to Improve<\/strong><\/h2>\n

Based on housing economists, Existing Home Sales are expected to\u00a0decline only\u00a0<\/strong>by -0.8%<\/strong>\u00a0on a month-to-month basis, compared to -1.2% in February.\u00a0The month before<\/a>, home sales fell to a November 2015 low, below expectations of -0.1% at -4.0%. Data for the month suggest a rise as\u00a0single-family sales and inventory for sales are up.<\/strong><\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex German PMI Falls to Near 6-Year Low Earlier, data from Europe saw German and French\u00a0PMIs falling back into contractionary\u00a0levels.\u00a0Germany\u2018s Flash manufacturing PMI declined to 44.7, a near 6-year low. Meanwhile, services came out somewhat steady at 54.9. Analysts had projected Manufacturing would increase from 47.6 to 48.0. However, expectations were missed on the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-144177","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=144177"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144177\/revisions"}],"predecessor-version":[{"id":144189,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144177\/revisions\/144189"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=144177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=144177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=144177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}