EUR/USD continues to drift this week. In Wednesday trade, the pair is trading at 1.1276, up 0.09% on the day. On the release front, there are no major eurozone or German numbers, but ECB Mario Draghi speaks at an ECB event in Frankfurt. The U.S. releases current account and trade balance. On Thursday, Germany releases CPI and the U.S. publishes GDP and unemployment claims.
German confidence indicators continue to raise concerns about the health of the economy. Consumer climate slipped in March to 10.4 points, after two successive readings of 10.8 points. With the eurozone mired in an economic slowdown and German numbers pointing to weaker growth, it’s not surprising that the German consumer has become less optimistic. On Tuesday, German business confidence improved slightly in March, with a reading of 99.6 points. The markets have been accustomed to releases above the 100-level, and the February reading of 98.5 was the weakest since November 2014. The survey noted that any improvement was confined to domestic sectors, such as construction and retail services.
The eurozone manufacturing sector remains weak, battered down by the ongoing global trade war. Germany, the locomotive of the eurozone, has also seen manufacturing numbers slip. There has been less demand for German exports, such as vehicles and auto parts.
Wednesday (March 27)
- 4:00 ECB President Draghi Speaks
- Tentative – German 10-year Bond Auction
- 8:30 US Current Account. Estimate -130B
- 8:30 US Trade Balance. Estimate -57.2B
- 10:30 US Crude Oil Inventories. Estimate -1.1M
- 17:30 US FOMC Member George Speaks
Thursday (March 28)
- All Day – German Preliminary CPI. Estimate 0.6%
- 8:30 US Final GDP. Estimate 2.4%
- 8:30 US Unemployment Claims. Estimate 222K
*All release times are DST
*Key events are in bold
EUR/USD for Wednesday, March 27, 2019
EUR/USD for March 27 at 6:15 DST
Open: 1.1266 High: 1.1278 Low: 1.1247 Close: 1.1275
EUR/USD ticked lower in the Asian session. The pair has reversed directions in European trade and posted gains
- 1.1212 is providing support
- 1.1300 is a weak resistance line
- Current range: 1.1212 to 1.1300
Further levels in both directions:
- Below: 1.1212, 1.1120 and 1.1046
- Above: 1.1300, 1.1434, 1.1553 and 1.1610
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