Yesterday data on US GDP in the first quarter, as we expected, was a surprise. However, it was revised downwardly from 2.4% to 1.8%. Surprisingly S&P 500 grew 0.94%, the euro fell 65 points.
Yesterday the ECB president Mario Draghi dropped pessimistically a hint that the ECB had made all but impossible to stabilize markets. Yesterday the mass media focused on the topic pertaining to machinations done by the Italian government with derivative contracts. With its help the Italian government disclosed the real figures of national debt to join the EU in 1999. Now the additional burden of 31.7 billion euros will fall on the state, it is the sum which the government received from commercial banks. Today at 13:10 GMT+4 Italy places 5- and 10-year yields amid the situation the outcomes of the auction may influence the rate of the euro.
In the evening strong data on the US is expected. Personal spending in May (16:30 GMT+4) is forecast to grow 0.3% vs. -0.2% in April. Initial Jobless Claims are expected to be 345K vs. 354K in the previous week. At 18:00 GMT+4 data on Pending Home Sales in May is published, forecast 1.0% vs. 0.3% in April. The euro may be in direct correlation to the stock market and rise along with it.
From the technical point of view, the drop was prevented at the level of indicator Kruzenshtern line (blue sliding) on the daily chart and at the moment the price is higher than the balance line (red sliding), thus, the target is 1.2935 may be observed later. On the H4 the correction may develop after the rate overcomes the testing level 1.3058. The first target is near the area 1.3078/82, resistances of trend lines on the H4 and daily charts. If it is tested, the price range 1.3115/34 opens. It is the level of Fibonacci 38.2%, resistance of trend line. If the support of trend line is broken on the H4 (1.2990) decline to the range of lows of May 31-June 3, 1.2943/55 is possible.
The material has been provided by InstaForex Company – www.instaforex.com
Yesterday data on US GDP in the first quarter, as we expected, was a surprise. However, it was revised downwardly from 2.4% to 1.8%. Surprisingly S&P 500 grew 0.94%, the euro fell 65 points.
Yesterday the ECB president Mario Draghi dropped pessimistically a hint that the ECB had made all but impossible to stabilize markets. Yesterday the mass media focused on the topic pertaining to machinations done by the Italian government with derivative contracts. With its help the Italian government disclosed the real figures of national debt to join the EU in 1999. Now the additional burden of 31.7 billion euros will fall on the state, it is the sum which the government received from commercial banks. Today at 13:10 GMT+4 Italy places 5- and 10-year yields amid the situation the outcomes of the auction may influence the rate of the euro.
In the evening strong data on the US is expected. Personal spending in May (16:30 GMT+4) is forecast to grow 0.3% vs. -0.2% in April. Initial Jobless Claims are expected to be 345K vs. 354K in the previous week. At 18:00 GMT+4 data on Pending Home Sales in May is published, forecast 1.0% vs. 0.3% in April. The euro may be in direct correlation to the stock market and rise along with it.
From the technical point of view, the drop was prevented at the level of indicator Kruzenshtern line (blue sliding) on the daily chart and at the moment the price is higher than the balance line (red sliding), thus, the target is 1.2935 may be observed later. On the H4 the correction may develop after the rate overcomes the testing level 1.3058. The first target is near the area 1.3078/82, resistances of trend lines on the H4 and daily charts. If it is tested, the price range 1.3115/34 opens. It is the level of Fibonacci 38.2%, resistance of trend line. If the support of trend line is broken on the H4 (1.2990) decline to the range of lows of May 31-June 3, 1.2943/55 is possible.
The material has been provided by InstaForex Company – www.instaforex.com
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