The euro exploits weaknesses in the US
26.11.2014
The euro/dollar is able to quickly respond to complex American news. This is a productive skill: on their own dark background they should be able to use the weaknesses of their opponent.
Yesterday statistics were released, according to which the final US GDP in the third quarter was at the level of 3.9% y/y against the expected growth by 3.3% y/y and the initial assessment of 3.5% g/g. Observers talk about a "strong" base for the growth of the US economy, but, in fact, in the third quarter the QE3 program was still working. When there will be data for the current quarter, then we can talk about the "base and strength."
But the weak data on US consumer confidence was perceived by the Euro-currency as a guide to action. According to the calculations of Conference Board, the index of consumer confidence in the US in November is down to the level of 88.7 points, having risen from the previous mark of 94.1 points. The assessment of the current situation sub-index is 91.3 points against the previous value of 94.4 points.
Actually, if you want reality, then this is exactly what it is. December's mark is likely to be slightly higher due to the Christmas sales, and winter indicators will be around the current levels.
The euro/dollar remains within the range of 1.2310-1.2600.
RoboForex Analytical Department
Yesterday statistics were released, according to which the final US GDP in the third quarter was at the level of 3.9% y/y against the expected growth by 3.3% y/y and the initial assessment of 3.5% g/g. Observers talk about a "strong" base for the growth of the US economy, but, in fact, in the third quarter the QE3 program was still working. When there will be data for the current quarter, then we can talk about the "base and strength."
But the weak data on US consumer confidence was perceived by the Euro-currency as a guide to action. According to the calculations of Conference Board, the index of consumer confidence in the US in November is down to the level of 88.7 points, having risen from the previous mark of 94.1 points. The assessment of the current situation sub-index is 91.3 points against the previous value of 94.4 points.
Actually, if you want reality, then this is exactly what it is. December's mark is likely to be slightly higher due to the Christmas sales, and winter indicators will be around the current levels.
The euro/dollar remains within the range of 1.2310-1.2600.
RoboForex Analytical Department
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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.