The EUR/USD par is trading upwards for the third consecutive day; the US Dollar remains weak.
So far, there are no conditions for the main currency pair to change stock-exchange sentiment. The market has a serious attitude against the US Dollar and processes macrostatistics very carefully, because there are no other reasons for movement. The current quote for the instrument is 1.1332.
The statistics published today indicated that in April the business sentiment index from ZEW in Germany increased up to 11.2 points against the predicted number of 8 points. The same indicator in the Eurozone increased up to 21.5 points against the expected number of 8.8 points. These numbers exceeded the predicted ones a lot, and this was a very strong support for the Eurocurrency.
The Eurozone provided another interesting number. So, the construction volume in the region in February increased up to 2.5% y/y. This data should be considered for the long-term perspective. On one hand, the increase of the indicator shows that the sector is being invested into, and this fact alone is positive. On the other hand, the construction volume is growing in anticipation of growth of demand. And this is quite good as well. Now it is important that consumers would be interested in supply.
The issue of the long-term recovery and subsequent growth is very complicated for the Eurozone. However, “rays of optimism” can be seen already, for instance, in reports with statistics on retail sales or building starts. The more active end consumers are, the faster the system recovers.
RoboForex Analytical Department
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