Euro rises despite Weak data, Awaits GDP numbers
13.11.2018, 16:03

Euro rises despite Weak data, Awaits GDP numbers

The single currency was trading 0.5% higher during the US session and the euro erased more than half of Monday’s losses as the EURUSD pair was hovering 20 pips below the 1.13 handle.

Earlier in the day, the German ZEW survey for November came out and the economic sentiment improved somewhat, when it printed -24.1 against expectations of -25.0 and the previous number remained at -24.7. However, the current situation crashed sharply from 70.1 to 58.2, probably due to the ongoing political crisis in Italy and a possible trade war between the EU and USA. The economic sentiment indicator for the whole euro zone fell to -22.0 from -19.4 in October. The euro continued to crawl higher, despite these miserable numbers.

The US calendar is empty today, again, and therefore there are no other news on the agenda today.

Investors will then pay attention to tomorrow’s EU GDP numbers for the third quarter and the year-on-year change is expected to stay unchanged at 1.7%, while the quarterly basis is forecast to remain at 0.2%. The economic momentum in the EU continues to decelerate, which might be negative for the euro.

Shortly after, the US CPI numbers will be released, with the headline CPI number seen climbing to 2.5% from 2.3% in October, whilst the core gauge is expected unchanged at 2.2%. Rising inflation might be positive for the US dollar.

The main resistance for the EURUSD pair is now at 1.13 and while below, rallies could be sold and the outlook seems bearish. Breaking above would cancel the immediate downward trend, with a potential relief rally to 1.14. On the downside, the next target for bears might be at Monday’s lows near 1.1220.

Disclaimer:

Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.

© 2000-2020. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location