The euro is trying to correct
21.05.2015
On Thursday afternoon, the main currency pair is making a new attempt to consolidate at current levels and adjust.
Whether this will work for the euro or not, we will know very soon. Sellers in the main currency pair took a break, but it is thought that it will not be for very long.
The daily statistics on Germany did not add optimism to the euro/dollar. The Purchasing Managers' Index, according to calculations by Markit, fell in May to a level of 52.8 points, which was the minimum in the index in five months. Growth rates were minimal for the whole current year. It seems that the private sector is starting to save money. Maybe there are earlier infiltrated doubts about the enlargement of the volumes of European Central Bank QE program.
The demand for the products by the population and by business remains weak. With this price pressure, in contrast, is growing.
It is interesting that the PMI in the manufacturing sector declined for Germany to 51.4 points versus 52.1 points a month earlier. So far all of these reports are in permissible limits - so as not to revise the forecasts of GDP - but the risks are increasing.
The euro/dollar is going to gain a foothold within the range of 1.1050-1.1200. Borders in the range look fairly strong.
RoboForex Analytical Department
Whether this will work for the euro or not, we will know very soon. Sellers in the main currency pair took a break, but it is thought that it will not be for very long.
The daily statistics on Germany did not add optimism to the euro/dollar. The Purchasing Managers' Index, according to calculations by Markit, fell in May to a level of 52.8 points, which was the minimum in the index in five months. Growth rates were minimal for the whole current year. It seems that the private sector is starting to save money. Maybe there are earlier infiltrated doubts about the enlargement of the volumes of European Central Bank QE program.
The demand for the products by the population and by business remains weak. With this price pressure, in contrast, is growing.
It is interesting that the PMI in the manufacturing sector declined for Germany to 51.4 points versus 52.1 points a month earlier. So far all of these reports are in permissible limits - so as not to revise the forecasts of GDP - but the risks are increasing.
The euro/dollar is going to gain a foothold within the range of 1.1050-1.1200. Borders in the range look fairly strong.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.