Yesterday, data on the Eurozone and the US was better than expected. Industrial production in the Eurozone in June grew 0.7% (forecast 1.1%, but figures from May were negative, -0.2% (revised upwardly from -0.3%), which can be considered as a positive factor. ZEW Survey (Economic Sentiment) in August grew up to 44.0 vs. expectations for 37.4. Data on US Retail Sales in July was in line with forecasts, 0.2%. However, Retail Sales Ex-Auto grew 0.5% vs. forecast for 0.4%. Amid the news the euro fell. As we have already noticed, the euro will drop followed by any positive piece of news for the US dollar as in September Qe3 will be cut and the cancellation of budget sequestration. In a couple of days we expect the euro will be in the area 50% of the Fibonacci level on the daily chart 1.3085/95.
Today, at 09:30 UTC+4 France’s GDP in the second quarter is revealed, forecast 0.1% vs. -0.2%. At 10:00 UTC+4 Germany’s GDP is published, forecast 0.6% vs. 0.1%. At 13:00 UTC+4 GDP in the Eurozone in the second quarter is published, forecast 0.2% vs. -0.2%.
At 16:30 UTC+4 US PPI is issued, forecast 0.4% vs. 0.8% in June. At 21:20 James Bullard, President and CEO of the Federal Reserve Bank of St. Louise speaks.
If data on GDP is lower than forecast, we expect the growth of the euro to the yesterday’s high, 1.3316, where in the H4 chart the price meets the Kruzenshtern line (blue sliding). Further upward movement is possible after consolidation above the level and positive news (target 1.3350). If data on GDP is weak, the downward movement may continue towards the depicted levels: 1.3232, 1.3204 (support of trend line in the H4), and 1.3188.
The material has been provided by InstaForex Company – www.instaforex.com
Yesterday, data on the Eurozone and the US was better than expected. Industrial production in the Eurozone in June grew 0.7% (forecast 1.1%, but figures from May were negative, -0.2% (revised upwardly from -0.3%), which can be considered as a positive factor. ZEW Survey (Economic Sentiment) in August grew up to 44.0 vs. expectations for 37.4. Data on US Retail Sales in July was in line with forecasts, 0.2%. However, Retail Sales Ex-Auto grew 0.5% vs. forecast for 0.4%. Amid the news the euro fell. As we have already noticed, the euro will drop followed by any positive piece of news for the US dollar as in September Qe3 will be cut and the cancellation of budget sequestration. In a couple of days we expect the euro will be in the area 50% of the Fibonacci level on the daily chart 1.3085/95.
Today, at 09:30 UTC+4 France’s GDP in the second quarter is revealed, forecast 0.1% vs. -0.2%. At 10:00 UTC+4 Germany’s GDP is published, forecast 0.6% vs. 0.1%. At 13:00 UTC+4 GDP in the Eurozone in the second quarter is published, forecast 0.2% vs. -0.2%.
At 16:30 UTC+4 US PPI is issued, forecast 0.4% vs. 0.8% in June. At 21:20 James Bullard, President and CEO of the Federal Reserve Bank of St. Louise speaks.
If data on GDP is lower than forecast, we expect the growth of the euro to the yesterday’s high, 1.3316, where in the H4 chart the price meets the Kruzenshtern line (blue sliding). Further upward movement is possible after consolidation above the level and positive news (target 1.3350). If data on GDP is weak, the downward movement may continue towards the depicted levels: 1.3232, 1.3204 (support of trend line in the H4), and 1.3188.
The material has been provided by InstaForex Company – www.instaforex.com
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