EUR/USD – Flat Start to Week As Euro Hugs 1.37

The EUR/USD is rangebound on Monday, continuing the lack of activity which marked the pair much of last week. The pair continues to trade in the low-1.37 range in the European session. On Friday, there was mixed news out of the US, as Building Permits shot higher while UoM Consumer Sentiment weakened in April. Monday has a very light schedule. In the Eurozone, there are just two releases on the calendar. German central bank president Jens Weidmann speaks at an event in Frankfurt, and the German central bank releases its monthly report. There are no US releases on Monday.

In the US, last week ended with encouraging housing numbers. Building Permits jumped to 1.08 million, well above the estimate of 1.01 million. This was the highest level we’ve seen since December 2006. Housing Starts continues to move higher and climbed to 1.07M, compared to the estimate of 0.98M. This marked a five-month high. Meanwhile, UoM Consumer Sentiment dipped to 81.8 points, short of the estimate of 84.7 points.

Eurozone GDP releases, the primary gauge of economic growth, mostly disappointed in April. Eurozone Flash GDP dipped to 0.2%, short of the estimate of 0.3% French and Italian GDP releases both weakened and missed expectations. The one bright note was German Preliminary GDP, which jumped 0.8% in Q1, its best showing since Q1 in 2013. This edged above the estimate of 0.7%.

EUR/USD for Monday, May 19, 2014

EUR/USD May 19 at 10:15 GMT

EUR/USD 1.3716 H: 1.3724 L: 1.3698

EUR/USD Technical

• EUR/USD is rangebound in Monday trade.
• 1.3649 continues to provide support. 1.3585 is stronger.
• 1.3786 is the next resistance line.

Further levels in both directions:

• Below: 1.3649, 1.3585, 1.3487 and 1.3346
• Above: 1.3786, 1.3893, 1.4000, 1.4149

OANDA’s Open Positions Ratio

EUR/USD ratio is almost unchanged in Monday trading. This is consistent with the lack of movement we are seeing from the pair, as the euro continues to drift close to the 1.37 line. The ratio runs slightly in favor of long positions, indicative of a slight trader bias towards the euro breaking out and posting gains.

EUR/USD continues to show little movement. The pair has edged up in the European session.

EUR/USD Fundamentals

• 7:00 Deutsche Bundesbank President Jens Weidmann Speaks.
• 10:00 Deutsche Bundesbank Monthly Report.

*Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.