On Tuesday late afternoon, the EUR/USD pair is becoming more active in its decline.
The single European currency is under pressure again. The pair is being sold for the second consecutive day, but now sales are more significant. The current quote for the instrument is 1.1349 (-0.35%).
The daily statistics on the Eurozone was quite unequal, that’s why investors couldn’t use these reports as a temporary catalyst. Retail sales in the region in February increased by 2.4% y/y and this is a good result, but monthly numbers raise a lot of questions.
Activity in the Eurozone private sector in March from Markit increased up to 53.1 points against the predicted number of 53.7 points. The report says that there wasn’t enough support from France and Italy in order for the indicator to reach the expected numbers. Companies are feeling optimistic about the future, but this optimism has its limits: the PMI in the European service sector dropped to the lowest level over five quarters, and it’s not a very good sign. The index is positive so far, but everything can change.
A lot of hopes are put on the ECB’s initiatives, and if this doesn’t work, it will be even more difficult to get the Eurozone economy back on track. Confidence is such a thing, which recovers slower than one wants, and drops faster than planned.
At the moment, the currency market has no really active catalyst in order to trade at full capacity. However, the current week was expected to be like this: the previous week was quire rough, and now it’s time to take a breath.
RoboForex Analytical Department
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