Yesterday data on the eurozone and the US was worse than expected. In the eurozone in March PMI Manufacturing was 46.6 vs. forecast for 48.2, PMI Services was 46.5 vs. expectations for 48.2. The US flash manufacturing purchasing managers index rose to a 54.9 reading in March from 54.3 in February. US Existing home sales in February grew 4.98 million against forecast for 5.02 million. However, it is better than the figures in January which totaled 4.92 million. The situation on Cyprus has not been cleared up yet. Cypriot lawmakers will begin debate today on legislation to unlock bailout funds and prevent a financial collapse with a European Central Bank deadline to cut off funding for its lenders in 3 days. The euro area finance ministers expect a proposal from Cyprus “as rapidly as possible” to raise the 5.8 billion euros needed to trigger the emergency loans, they said in a statement on March 21. As a result the euro fell 33 points. In these circumstances one could expect even worse decline, but investors are not hurry to sell the currency.
Today two macroeconomic pieces of news are issued. At 13:00 GMT+4 IFO Business Climate Index in Germany in March is expected to be 107.4 vs. 107.8 in the previous month. At 15:00 GMT+4 ECB reveals data on the 3-year LTRO.
Technically, the situation has not changed. In order to continue growing and close the gap, the price has to test 1.2964, the low of March 7 with first targets 1.3025 and 1.3050. In order to attack the resistance 1.2964 the price has to consolidate higher than 314% of Fibonacci level on the H4 (1.2925).
The material has been provided by InstaForex Company – www.instaforex.com
Yesterday data on the eurozone and the US was worse than expected. In the eurozone in March PMI Manufacturing was 46.6 vs. forecast for 48.2, PMI Services was 46.5 vs. expectations for 48.2. The US flash manufacturing purchasing managers index rose to a 54.9 reading in March from 54.3 in February. US Existing home sales in February grew 4.98 million against forecast for 5.02 million. However, it is better than the figures in January which totaled 4.92 million. The situation on Cyprus has not been cleared up yet. Cypriot lawmakers will begin debate today on legislation to unlock bailout funds and prevent a financial collapse with a European Central Bank deadline to cut off funding for its lenders in 3 days. The euro area finance ministers expect a proposal from Cyprus “as rapidly as possible” to raise the 5.8 billion euros needed to trigger the emergency loans, they said in a statement on March 21. As a result the euro fell 33 points. In these circumstances one could expect even worse decline, but investors are not hurry to sell the currency.
Today two macroeconomic pieces of news are issued. At 13:00 GMT+4 IFO Business Climate Index in Germany in March is expected to be 107.4 vs. 107.8 in the previous month. At 15:00 GMT+4 ECB reveals data on the 3-year LTRO.
Technically, the situation has not changed. In order to continue growing and close the gap, the price has to test 1.2964, the low of March 7 with first targets 1.3025 and 1.3050. In order to attack the resistance 1.2964 the price has to consolidate higher than 314% of Fibonacci level on the H4 (1.2925).
The material has been provided by InstaForex Company – www.instaforex.com
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