EURUSD: Euro growth will continue until tomorrow's ECB meeting

The euro strengthened slightly against the US dollar and went out of the trading range, breaking the level of 1.1250. However, in order to maintain further growth, new good fundamental data are required, indicating a revival of the European economy, or similar statements from the European Central Bank at tomorrow's meeting.

Yesterday, a report was released indicating that the pace of Germany's foreign trade in February of this year slowed significantly against the background of international trade conflicts.

According to the report of the Federal Bureau of Statistics of Germany, exports of goods in February decreased by 1.3% compared with January, while imports of goods to Germany in February decreased by 1.6%. Germany's foreign trade surplus amounted to 18.7 billion euros against 18.5 billion euros in January. Germany's current account surplus in February was 16.3 billion euros.

Given the lack of important fundamental statistics, the report on orders for manufacturing goods in the United States, which did not allow the US dollar to regain lost positions against the euro in the morning.

According to the US Department of Commerce, orders for manufactured goods in the United States in February 2019 decreased by 0.5% to $ 497.47 billion. The data completely coincided with economists' forecasts. Excluding transportation, production orders in February rose by 0.3%.

9UTT_mitgpH8fWoznfcgQ2KM1w5iqMknCUL7LXXd

The US employment index report was ignored by the market. According to the Conference Board, the index of employment trends in the US for February was revised to 111.62 points from 111.15 points.

Yesterday, a number of statements were made by the US trade representative, who proposed to introduce duties on imports from the EU worth 11 billion dollars. He also noted that the list of fees may change, as much will depend on the WTO decision regarding subsidies for Airbus.

As for the current technical picture of the EURUSD pair, it is quite possible that the situation will not seriously change until tomorrow's ECB meeting. However, a break of 1.1290 euro resistance could maintain an upward trend in the pair, which will lead to a test of highs around 1.1325 and 1.1390. Buyers will protect the support level of 1.1240, but a breakthrough could lead to a larger sale of risky assets with a test of the lows of 1.1210 and 1.1150.

The Canadian dollar rose sharply against the US dollar after data that the growth of new home mortgages in Canada has seriously recovered in March this year. According to the report, bookmarks for new homes in March increased by 15.8% compared with February and amounted to 192,527 homes. Economists had expected 194,000 bookmarks in March.

The material has been provided by InstaForex Company - www.instaforex.com

Comments