At 11:00 (GMT+2), the ZEW business sentiment index in Germany will be published. The indicator reflects the difference between the shares of institutional investors and analysts who are optimistic and pessimistic. It is predicted that the value will continue to deteriorate and amount to –27.3 points. The implementation of the forecast may put pressure on the euro.
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15.10.2019 - 09.10.2019
At 11:00 (GMT+2), the ZEW business sentiment index in the EU will be published. The indicator reflects the difference between the share of optimistic and pessimistic institutional investors and analysts. The value is expected to continue to deteriorate at –33.0 points. The implementation of the forecast may put pressure on the European currency.
At 10:30 (GMT+2), the UK data on the level of employment for August will be published. This indicator captures changes in the number of employed citizens in the country. It is predicted that the value will decrease from 31K to 23K. Realization of the forecast may put pressure on the pound.
At 10:30 (GMT+2), the UK data on the unemployment rate for August will be published. This indicator fixes the percentage of the number of unemployed over 18 years of age to the total working-age population. Only registered unemployed are counted. The unemployment rate is projected to remain at 3.8%.
USD showed ambiguous dynamics against JPY on Monday, halting the development of an uptrend in the short term, which brought the instrument to local highs of August 1. Japanese exchanges were closed yesterday due to the Health and Sports Day, so market activity remained fairly low.
Yesterday, the NZD/USD pair fell, interrupting the “bullish” impulse formed at the end of the last week due to a decrease in optimism regarding the Brexit negotiation, as the media reported that Boris Johnson’s plan for the Irish border was not positive met in Brussels.
The pair may fall.
On the 4-hour chart, a local correction developed as the second wave of the higher level ii of 1, shaped as a flat. Now, the development of the wave iii of 1 i starting, within which the entry first wave of the lower level i of (i) of iii has formed, and the correction ii of (i) of iii has ended. If the assumption is correct, the pair will fall to the levels of 0.9656–0.9556. In this scenario, critical stop loss level is 1.0028.
The pair may fall.
On the 4-hour chart, the third wave of the higher level iii of 3 of (5) forms, within which the wave (iii) of iii of 3 develops. Now, the first wave of the lower level i of (iii) has formed, and the local correction ii of (iii) ha developed. If the assumption is correct, the pair will fall to the levels of 0.6540–0.6418. In this scenario, critical stop loss level is 0.6810.
At 06:30 (GMT+2), preliminary data on industrial production for August will be published in Japan. The indicator fixes the level of change in the volume of industrial production and utilities in the country. The calculation takes into account the manufacturing and mining industries, as well as the electric power industry. It is predicted that production will decline by 1.2%, which may put pressure on the yen.
At 02:30 (GMT+2) the report of the October meeting of the Reserve Bank of Australia on monetary policy will be published. Investors will look in them for hints of further actions of the regulator. The RBA decided to reduce the interest rate from 1.00% to 0.75%, however, according to most observers, this is not enough to support the Australian economy, so further easing of rates is expected.