Major economic events issued yesterday in Europe were not bad on the whole. Industrial Production in the eurozone in March grew 1.0% vs. estimates for 0.6%. ZEW Survey (Economic Sentiment) in the eurozone in May was 27.6 (forecast 27.3), ZEW Economic Sentiment in Germany in May was 36.4 (forecast 39.5, however, it was better than 36.3 in the previous month). Significant economic news about the US was not released; the stock market had not reasons to drop (S&P 500 +0.99%). However, the euro dropped 55 points. We suppose it was not weak data on German ZEW CSS, but it was due to weakness in the eurozone. We spoke about it depicting the bearish target 1.2725/30.
Nevertheless, today one more attempt of the euro’s correction may be made, as better data on GDP in the eurozone and weak data on both US industrial and manufacturing production is expected.
At 9:30 GMT+4 Preliminary GDP in France in the first quarter is released; it is estimated to drop 0.1% vs. -0.3%. At 10:00 GMT+4 Preliminary GDP in Germany is revealed, forecast 0.3% vs. -0.6%. At 12:00 Preliminary GDP in Italy is issued, forecast -0.4% vs. -0.9%. At 13:00 GMT+4 Preliminary GDP in the eurozone in Q1 is shown, forecast -0.1% vs. -0.6% in Q4.
At 17:45 GMT+4 data on US Capacity Utilization in April is issued, forecast 78.4% vs. 78.5%. US Industrial production is expected to drop 0.1% vs. growth for 0.4% in March.
If the data on the eurozone is positive, we expect the euro will grow to the resistance of trendline on the H4, 1.2977. If investors are disappointed and the level of 1.2905, the support on the H4, is broken we may observe descending movement to 1.2854/60, support of the trendline on the daily chart.
The material has been provided by InstaForex Company – www.instaforex.com
Major economic events issued yesterday in Europe were not bad on the whole. Industrial Production in the eurozone in March grew 1.0% vs. estimates for 0.6%. ZEW Survey (Economic Sentiment) in the eurozone in May was 27.6 (forecast 27.3), ZEW Economic Sentiment in Germany in May was 36.4 (forecast 39.5, however, it was better than 36.3 in the previous month). Significant economic news about the US was not released; the stock market had not reasons to drop (S&P 500 +0.99%). However, the euro dropped 55 points. We suppose it was not weak data on German ZEW CSS, but it was due to weakness in the eurozone. We spoke about it depicting the bearish target 1.2725/30.
Nevertheless, today one more attempt of the euro’s correction may be made, as better data on GDP in the eurozone and weak data on both US industrial and manufacturing production is expected.
At 9:30 GMT+4 Preliminary GDP in France in the first quarter is released; it is estimated to drop 0.1% vs. -0.3%. At 10:00 GMT+4 Preliminary GDP in Germany is revealed, forecast 0.3% vs. -0.6%. At 12:00 Preliminary GDP in Italy is issued, forecast -0.4% vs. -0.9%. At 13:00 GMT+4 Preliminary GDP in the eurozone in Q1 is shown, forecast -0.1% vs. -0.6% in Q4.
At 17:45 GMT+4 data on US Capacity Utilization in April is issued, forecast 78.4% vs. 78.5%. US Industrial production is expected to drop 0.1% vs. growth for 0.4% in March.
If the data on the eurozone is positive, we expect the euro will grow to the resistance of trendline on the H4, 1.2977. If investors are disappointed and the level of 1.2905, the support on the H4, is broken we may observe descending movement to 1.2854/60, support of the trendline on the daily chart.
The material has been provided by InstaForex Company – www.instaforex.com
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