Analytics, News, and Forecasts for CFD Markets: currency news — 15-01-2019.

“The new attack by the ECB's supervisory authority on the Italian banking system and MPS once again shows that the banking union not only does not make our financial system more stable, but also causes instability,” Salvini said.

The far-right leader blamed the ECB for the exceptional decisions taken by the European Commission, adding that he raised a “fundamental question” about the bank’s perceived impartiality.

“Independence does not mean irresponsibility,” Salvini said, demanding greater transparency in decision making.

The headline general business conditions index fell eight points to 3.9, its lowest level in well over a year. New orders increased at a slower pace than in recent months, while shipments continued to climb significantly. Delivery times were slightly shorter, and inventories declined. Labor market indicators pointed to a modest increase in employment and hours worked.

The prices paid index moved lower for a second consecutive month, indicating some slowing in input price increases, and the prices received index held steady. Looking ahead, firms were less optimistic about the six-month outlook than they were last month.

The Producer Price Index for final demand fell 0.2 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.1 percent in November and 0.6 percent in October. On an unadjusted basis, the final demand index moved up 2.5 percent in 2018, the same as in 2017.
In December, 80 percent of the decrease in the final demand index is attributable to a 0.4-percent decline in prices for final demand goods. The index for final demand services edged down 0.1 percent.
The index for final demand less foods, energy, and trade services was unchanged in December following a 0.3-percent rise in November. In 2018, prices for final demand less foods, energy, and trade services advanced 2.8 percent following a 2.3-percent increase in 2017.

The first estimate for euro area (EA19) exports of goods to the rest of the world in November 2018 was €203.0 billion, an increase of 1.9% compared with November 2017 (€199.2 bn). Imports from the rest of the world stood at €184.0 bn, a rise of 4.7% compared with November 2017 (€175.7 bn). As a result, the euro area recorded a €19.0 bn surplus in trade in goods with the rest of the world in November 2018, compared with +€23.4 bn in November 2017. Intra-euro area trade rose to €170.5 bn in November 2018, up by 1.5% compared with November 2017.

EUR/USD

Resistance levels (open interest**, contracts)

$1.1596 (2286)

$1.1576 (1951)

$1.1561 (473)

Price at time of writing this review: $1.1472

Support levels (open interest**, contracts):

$1.1400 (2903)

$1.1365 (3993)

$1.1326 (4796)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date February, 8 is 69067 contracts (according to data from January, 14) with the maximum number of contracts with strike price $1,1600 (5466);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3000 (547)

$1.2971 (180)

$1.2950 (147)

Price at time of writing this review: $1.2881

Support levels (open interest**, contracts):

$1.2770 (495)

$1.2748 (206)

$1.2725 (477)

Comments:

- Overall open interest on the CALL options with the expiration date February, 8 is 22781 contracts, with the maximum number of contracts with strike price $1,3200 (1887);

- Overall open interest on the PUT options with the expiration date February, 8 is 24150 contracts, with the maximum number of contracts with strike price $1,2600 (1900);

- The ratio of PUT/CALL was 1.10 versus 1.08 from the previous trading day according to data from January, 14

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

In December 2018, the Consumer Prices Index (CPI) was stable over a month, after a 0.2% downturn in November. The sharp drop in energy prices (−2.4% after −0.7%) and the downturn in those of manufactured products (−0.2% after +0.1%) were indeed offset by a rebound in the prices of services (+0.4% after −0.3%) and food (+0.6% after −0.2%).

Seasonally adjusted, consumer prices edged down by 0.2% over a month, after a 0.1% downturn in November.

Year on year, consumer prices slowed down for the second consecutive month: +1.6% in December after +1.9% in November and +2.2% in October. This drop in inflation came from a year-on-year slowdown in energy, services and tobacco prices and a larger drop in manufactured product prices. Contrariwise, food prices accelerated.

Food prices fell 0.2 percent in December 2018. After seasonal adjustment, they rose 0.5 percent.

In December 2018 compared with November 2018:

• fruit and vegetable prices fell 1.1 percent (down 0.6 percent after seasonal adjustment)

• meat, poultry, and fish prices rose 0.2 percent

• grocery food prices rose 0.1 percent (up 0.5 percent after seasonal adjustment)

• non-alcoholic beverage prices fell 2.6 percent

• restaurant meals and ready-to-eat food prices rose 0.2 percent.

Food prices increased 1.0 percent in the year ended December 2018.

In December 2018 compared with December 2017:

• fruit and vegetable prices decreased 6.1 percent

• meat, poultry, and fish prices increased 3.8 percent

• grocery food prices increased 1.4 percent

• non-alcoholic beverage prices decreased 0.2 percent

• restaurant meals and ready-to-eat food prices increased 2.9 percent.

• Theresa May's Brexit agreement has suffered its first official parliamentary defeat as peers registered their opposition to it by 321 votes to 152 with a majority of 169