EUR/USD is showing little movement on Wednesday, as the pair is trading in the high-1.23 range. On the release front, it’s a quiet day, with no major events out of the Eurozone or the US. In the Eurozone, French Industrial Production disappointed, posting a decline of -0.8%. In the US, today’s highlight is Crude Oil Inventories.
The Eurozone continues to struggle with low inflation levels, and a senior ECB official is warning of deflation dangers. Speaking in Washington on Tuesday, an ECB board member Peter Praet said that falling oil prices could push Eurozone inflation into negative territory. Such a scenario would spell bad news for the sluggish Eurozone economy and could push the euro to lower levels.
German numbers have been mixed recently and the trend has continued this week. On Tuesday, Trade Balance climbed to EUR 20.6 billion, marking a 3-month high. This easily beat the estimate of 18.1 billion. On Monday, German Industrial Production didn’t look sharp, posting a weak gain of 0.2%. This was a sharp drop from the 1.4% gain a month earlier. As the Eurozone’s largest economy, the euro is sensitive to German data and could lose more ground if key German data misses expectations.
EUR/USD has shown little movement in the Asian and European sessions.
1.2407 remains a weak resistance line. 1.2518 is stronger.
1.2286 is a strong support level.
Current range: 1.2286 to 1.2407 EUR/USD ratio is pointing to gains in short positions on Wednesday, continuing the trend we saw a day earlier. This is not consistent with the pair’s movement, as the euro is almost unchanged. The ratio is pointing to a majority of short positions, indicative of trader towards the dollar posting gains.
The Eurozone continues to struggle with low inflation levels, and a senior ECB official is warning of deflation dangers. Speaking in Washington on Tuesday, an ECB board member Peter Praet said that falling oil prices could push Eurozone inflation into negative territory. Such a scenario would spell bad news for the sluggish Eurozone economy and could push the euro to lower levels.
German numbers have been mixed recently and the trend has continued this week. On Tuesday, Trade Balance climbed to EUR 20.6 billion, marking a 3-month high. This easily beat the estimate of 18.1 billion. On Monday, German Industrial Production didn’t look sharp, posting a weak gain of 0.2%. This was a sharp drop from the 1.4% gain a month earlier. As the Eurozone’s largest economy, the euro is sensitive to German data and could lose more ground if key German data misses expectations.
EUR/USD has shown little movement in the Asian and European sessions.
1.2407 remains a weak resistance line. 1.2518 is stronger.
1.2286 is a strong support level.
Current range: 1.2286 to 1.2407 EUR/USD ratio is pointing to gains in short positions on Wednesday, continuing the trend we saw a day earlier. This is not consistent with the pair’s movement, as the euro is almost unchanged. The ratio is pointing to a majority of short positions, indicative of trader towards the dollar posting gains.
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