Global macro overview for 09/12/2016:
Germany's Bundesbank (BUBA) has issued its semi-annual review of the German economy this morning. It is worth to notice, that BUBA raised German GDP forecasts for 2016 and 2017 to 1.8%, but downgraded inflation forecast to 1.4% from 1.5% for 2018 and increased inflation expectations to 1.7% and even higher to 1.9% for 2019. Moreover, it is mentioned in the report, that government debt ratio could fall to 60% of GDP as Germany's budget is set to generate surpluses for years without new measures. Bundesbank President Jens Weidmann said in the report, that "Germany's economy is continuing to move on a sound upward path. Its main driver is buoyant domestic demand, which is being bolstered by the favorable situation in the labour market and by rising household income". In conclusion, the Bundesbank report revealed a bullish overall tone and positive bullish projections of German economy, nevertheless nothing spectacular.
Let's now take a look at EUR/USD technical picture in the 4H time frame. It looks like another lower high has been made at the level of 1.0872 and now the market has resumed the downtrend. The bear camp is stil in full control over this market, so the test/breakout of 1.0510 is just a matter of time.
