EUR and GBP: Euro and pound decline after weak inflation reports coinciding with economists' forecasts
The positive balance of current account of payment balance of the eurozone has declined, but the positive balance of foreign trade in the eurozone increased. Such data were presented today in the morning. The report on inflation in the eurozone traders ignored, as it coincided with the forecasts of economists.
As indicated in the report of the European Central Bank, the surplus of the current account of the balance of payments in the eurozone in February of this year fell to 27 billion euros against 37 billion euros in January. In February 2018, the eurozone's current account surplus was 32 billion euros. The decline is directly related to the slowdown in world trade.
On the contrary, the eurozone's foreign trade surplus increased in February. However, is is too early to rejoice. Growth was achieved by reducing imports rather than increasing exports.
According to the statistical agency Eurostat, foreign trade surplus in February 2019 increased to 19.5 billion euros from 17.4 billion euros in January. As noted above, imports of the eurozone declined by 2.7%, while exports only by 1.4%. Eurozone sales to other countries in February exceeded purchases by 17.9 billion euros, while in February the corresponding figure was 16.5 billion euros.
Also today, a report on the consumer price index came out, which fully coincided with the forecasts of economists. According to Eurostat, the eurozone's annual consumer price inflation in March fell to 1.4% against the February value of 1.5%. The target level of the European Central Bank is slightly below 2.0%. In March compared with February of this year, prices rose by 1.0% and also coincided with forecasts.
As for the technical picture of the EURUSD pair, growth was limited by the resistance around 1.1320, which now creates the main problems for buyers of risky assets. The bears will strive to return the trading instrument to the area of the lower border of the side channel 1.1280, from where you can again expect to resume demand.
The British pound ignored the data presented on Wednesday from the National Bureau of Inflation Statistics. According to the report, the UK's annual CPI in March rose by 1.9%, as in February, indicating signs of stability. In March, compared with February, inflation rose by 0.2%.
Today, a report was also submitted from the National Bureau of Statistics of the United Kingdom on housing prices, which rose by only 0.6% in February compared to the same period of the previous year. In January, growth was recorded immediately by 1.7%. Most of all, housing prices fell in London, where the decline was about 3.8% compared to the same period last year. It is worth noting that the decline in prices in London has been observed for 12 months in a row.
The material has been provided by InstaForex Company - www.instaforex.com