Yesterday data on Industrial Production in China in April was slightly lower than forecast, 9.3% vs. 9.4%. Figures of Retail Sales in China were in line with the estimates, 12.8%. Data on US Retail Sales Ex-Auto was in line with estimates as well, -0.1%; US Retail Sales grew 0.1% vs. forecast expectations for -0.3%.
However, despite moderate rise in retail sales, the idea about cut of QE3 is getting stronger, even there were first rumors about possible increase in the key rate. As the result S&P 500 added 0.02%, the euro grew 3 points.
The expected correction on the euro has started today. The relevant information for today is ZEW Survey in Germany and the eurozone in May and Industrial production in the eurozone. German ZEW Economic sentiment (issued at 13:00 GMT+4) is expected to rise from 36.3 to 39.6; in the eurozone it is forecast to grow from 24.9 to 27.3. At the same time data on Industrial Production in the eurozone in March is published. It is estimated to be 0.6% vs. 0.4% in February.
Technically, we expect the continuation of local growth to the level of 1.3053, the low of April 30 and May 6. The second target is 1.3072, resistance of trendline on the daily chart. Tomorrow mixed data on the eurozone and the US may be issued. Thus, the correction may be finished.
If the price reverses under the trendline on the H4, lower 1.2988, the descending movement to 1.2905 is possible.
The material has been provided by InstaForex Company – www.instaforex.com
Yesterday data on Industrial Production in China in April was slightly lower than forecast, 9.3% vs. 9.4%. Figures of Retail Sales in China were in line with the estimates, 12.8%. Data on US Retail Sales Ex-Auto was in line with estimates as well, -0.1%; US Retail Sales grew 0.1% vs. forecast expectations for -0.3%.
However, despite moderate rise in retail sales, the idea about cut of QE3 is getting stronger, even there were first rumors about possible increase in the key rate. As the result S&P 500 added 0.02%, the euro grew 3 points.
The expected correction on the euro has started today. The relevant information for today is ZEW Survey in Germany and the eurozone in May and Industrial production in the eurozone. German ZEW Economic sentiment (issued at 13:00 GMT+4) is expected to rise from 36.3 to 39.6; in the eurozone it is forecast to grow from 24.9 to 27.3. At the same time data on Industrial Production in the eurozone in March is published. It is estimated to be 0.6% vs. 0.4% in February.
Technically, we expect the continuation of local growth to the level of 1.3053, the low of April 30 and May 6. The second target is 1.3072, resistance of trendline on the daily chart. Tomorrow mixed data on the eurozone and the US may be issued. Thus, the correction may be finished.
If the price reverses under the trendline on the H4, lower 1.2988, the descending movement to 1.2905 is possible.
The material has been provided by InstaForex Company – www.instaforex.com
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