Euro/dollar declines further
15.05.2014
The main currency pair has not found support from this morning’s statistics and continues to fall: after breaking through 1.3760 it will continue to 1.3645, if no other drivers are introduced.
Thursday is a "stressful" day for the euro/dollar. In the morning everything went wrong: the hope for a rebound after a series of sale sessions dissipated by noon, the market did not find anything positive in the morning data from Germany, the French report and the presentation by Mr. Weidmann only strengthened the bears’ positions.
The preliminary release for the first quarter German GDP showed an increase of 0.8% q/q with the forecast of growth having been 0.7% q/q. Everything would have been fine, if the French statistical data did not follow showing zero change in GDP with the forecast assuming a minimum increase of 0.1% q/q, but this miracle did not happen.
And such tense atmosphere was present at the speech of the head of Bundesbank, the German Central Bank, Mr. Weidmann. The monetary politician only said that he was ready to support any fiscal initiative of the European Central Bank, but would like to see a well reasoned position and strong reasons to promote market incentives. Yes, further easing in the euro zone economy would bring support - and that the euro / dollar could no longer do.
Later on - statistics for the euro area GDP (do not expect miracles) and the final report on inflation in the region. All of this may well contribute to the continued weakening of the already "nervous" euro.
RoboForex Analytical Department
Thursday is a "stressful" day for the euro/dollar. In the morning everything went wrong: the hope for a rebound after a series of sale sessions dissipated by noon, the market did not find anything positive in the morning data from Germany, the French report and the presentation by Mr. Weidmann only strengthened the bears’ positions.
The preliminary release for the first quarter German GDP showed an increase of 0.8% q/q with the forecast of growth having been 0.7% q/q. Everything would have been fine, if the French statistical data did not follow showing zero change in GDP with the forecast assuming a minimum increase of 0.1% q/q, but this miracle did not happen.
And such tense atmosphere was present at the speech of the head of Bundesbank, the German Central Bank, Mr. Weidmann. The monetary politician only said that he was ready to support any fiscal initiative of the European Central Bank, but would like to see a well reasoned position and strong reasons to promote market incentives. Yes, further easing in the euro zone economy would bring support - and that the euro / dollar could no longer do.
Later on - statistics for the euro area GDP (do not expect miracles) and the final report on inflation in the region. All of this may well contribute to the continued weakening of the already "nervous" euro.
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.