EUROPEAN SESSION UPDATE: The Euro showed little reaction to the better than expected industrial production; BoJ expects a return to moderate recovery…
It’s been another European session with low effect economic releases and small moves in the Pound and Euro. Instead, the biggest moves were once again seen by the Aussie and Yen, but this time the Yen was declining following recent weakness, while the Aussie switched directions and has been rising in today’s Forex markets.
In economic releases, Euro-zone industrial production rose 0.4% in April, beating expectations for production to remain unchanged. However, the release did little to help single currency trading. In Germany, annual inflation was confirmed at 1.5% for May. In the UK, the jobless claimant count declined for the seventh consecutive month, but only gave a temporary bounce to the Pound.
Bank of England’s Fisher said today that it is not really the central bank’s job to fund lending, referring to the BoE’s Funding for Lending Scheme. However, he conceded that FLS has lowered funding costs. Meanwhile the BoJ released a monthly economic report today saying that it expects a return to moderate recovery in the Japanese economy.
The Euro is trading slightly below 1.3300 against the US Dollar at the time of this writing, and the pair has seen resistance in the past around 1.3400. Support might be provided by a broken resistance line around 1.3200.
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EURUSD Daily: June 12, 2013
Chart created by Benjamin Spier using Marketscope 2.0
--- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .