Rejoice investors! The GDP of Germany managed a 0.3% gain compared to the expectation of 0.2% and the GDP of France came in 0.0% compared to the expectation of minus -0.1%. With numbers like these a party should be held, the entire European continent should go on holiday, after all German and French heads are staying above the water. There has been no drowning yet and the lifeguards can remain in their chairs.
Meanwhile in realityland the ZEW Economic Sentiment reading from Germany was minus -25.5 missing the already negative estimate of -19.4 and the broad European ZEW outcome was minus -21.2, also missing a lackluster forecast of -19.1. But something must be good, we are playing the confidence game, let’s see – ah no, the Industrial Production for the E.U. declined to -0.6%. Well, at least the broad European Flash GDP number didn’t disappoint more than was expected with its -0.2% ratio. It is merely a slight recession folks. Not a picnic, but there is food at the grocery.
The EUR/USD has seen a slight upswing in value for the EUR. The Single Currency finds itself traversing a range thus far in August. Gold as of this afternoon’s writing is around 1617.00 USD. Crude Oil has proven rather tame also regarding its range, though it has maintained a stronger value than some analysts believe it ought to. The JPY has been consolidated as has been the AUD versus the USD. The GBP has picked up a few pence.
Important data will come from the States today. Retail Sales being the highlight. Wall Street took a cautious turn yesterday as the Dow and S&P indexes dropped slightly and the NASDAQ found a touch of momentum. It is clear that investors are being careful but they might find eventually that sitting on the fence is not very comfortable. Traders who practice proper risk management have a chance to take advantage of short-term ranges.