The Top 5 Forex Developments 12/15/14 – 12/19/14 – Paxforex

Here are the Top Forex Developments for the trading week between 12/15/14 and 12/19/14:

Number One: UK CPI

Consumer inflation in November slowed down further as evident in the CPI report. The CPI contracted 0.3% in November and slowed down to 1.0% annualized. The annualized core CPI rose 1.2%. The British Pound sold off after the CPI report was released and showed slower inflation as compared to October’s increase of 0.1% monthly and 1.3% annualized for the CPI and 1.5% annualized for the core CPI.

Number Two: German ZEW Survey

The Eurozone has struggled and last week’s reports showed signs of concern until Germany released its ZEW Economic Sentiment Survey for December. Economists expected a reading of 20.0 which would have almost doubled November’s level of 11.5. The ZEW Economic Sentiment Survey came in at 34.9 and the Euro reacted positively. This has shaken out many of the bears in the European currency.

Number Three: Canadian CPI

Inflation in Canada has slowed down and came in worse than expected in November. Economists expected the CPI to contract by 0.2% monthly and rise 2.2% annualized. The CPI contracted 0.4% and monthly and rose only 2.0% annualized which compares to a contraction of 0.1% and annualized increase of 2.4% reported in October. The Canadian Dollar remained stable.

Number Four: US CPI

Staying with the CPI theme of this week, the US CPI came in below expectations as well. Economists expected the CPI for November to show a contraction of 0.1% monthly and an increase of 1.4% annualized. The CPI showed a contraction of 0.3% monthly and an increase of 1.3% annualized. The US Dollar wobbled, but remained strong overall despite the weak CPI reading.

Number Five: Eurozone PMI

Rounding up a positive week for the Eurozone, at least as far as economic data is concerned. The Eurozone Composite PMI for December was reported at 51.7, the Eurozone Manufacturing PMI was reported at 50.8 and the Eurozone Services PMI was reported at 51.9. This compares to November data set of 51.1. 50.1 and 51.1 respectively. The Euro struggled despite the much better than expected data.

Written by Paxforex