Published last week economic data for Germany and the Eurozone generally was quite good. Retail sales, the index of business activity in the manufacturing and service sectors have exceeded analysts' forecasts. But unemployment in the Eurozone remains high and consumer price inflation, as well as the index of producer prices is low. On the background of these data expectations of introduction by the European Central Bank of additional stimulus measures have significantly increased, which, of course, negatively affected the dynamics of the single European currency.
Most of the week it is under pressure from the sellers, which led to its decline against the US dollar to support in the area of 1.0825. All attempts of bears to absorb the bids are placed below, were unsuccessful, and by the end of the week, the euro was able to recover up to resistance in the area of 1.0973 and then up to 1.1043. If the probability of further weakening by the ECB of monetary policy is very high, then the question of how far the central bank is ready to go with the purpose to unleash the inflation, analysts' opinions are divided, and in the conditions of uncertainty, profiteers preferred to take profits.
It should be noted that the euro/dollar ended the week on a positive note, despite the publication of quite strong employment report in the US non-agricultural sector, whose mark was significantly higher than analysts' forecasts, and the previous value was revised upwards. In addition, the unemployment rate remained at 4.9%. However, the fly in the ointment for the dollar was the data on hourly wages, that were worse than expected. And still, expect a significant reduction in the dollar this week, IAFT traders are should not to expect, and the euro, ahead of ECB meeting, announcements of the results may again come under pressure.BlogLinks
Best regards,
International Association of Forex Traders,AffiLinks
No comments:
Post a Comment