On Tuesday afternoon, the main currency pair is trading to the downside because of the unequal statistics from Germany.
The single European currency kept cool on Tuesday during the Asian trading session, but after the German report published in the afternoon, retreated against the US Dollar. The current quote for the pair is 1.1182.
So, the final report on the German GDP in the first quarter of 2016 indicated that the country’s economy expanded by 0.7% from one quarter to the next. This number was expected, but on a year-on-year basis, the indicator didn’t match the predicted number. The economy increased only by 1.3% y/y against predictions of 1.6% y/y. This is exactly why the Eurodollar was sold during the day.
Hardly there will be any alternative statistics today, so investors will either use the available information as the main daily catalyst or switch attention to comments made by monetary authorities from different countries.
The article in The Wall Street Journal about goals of the People's Bank of China was barely noticed by investors. The article says that the Chinese government is no longer focused on establishing the Yuan as an international currency doesn’t take efforts to make the their currency value as the market one. Under different conditions, if the market were more sensitive to rumors and predictions, it would immediately respond to the article.
The Eurodollar is ready to move towards the downside border of the short-term trading range, and if the price breaks 1.1177, the next target for bears will be at 1.1150.
RoboForex Analytical Department
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