EUR/USD flat near 1.1340 post-German data, looks to risk trends
|- The pair struggles for direction near 1.1340.
- The greenback stays sidelined around 96.50.
- German trade surplus widened to €19.4 billion in December.
The recent decline in the single currency is showing some signs of respite today and is helping EUR/USD to keep the trade in the 1.1340 region.
EUR/USD looks to risk trends
After yesterday’s test of fresh lows in the 1.1320 region, spot managed to regain some traction to the current 1.1340 area, although it still remains under pressure amidst alternating risk appetite trends in the global markets.
EUR has practically paid no attention to today’s German data, where December’s trade surplus improved to €19.4 billion, surpassing previous estimates as well.
Adding to the downbeat sentiment around the shared currency, the European Commission has publish its winter forecasts yesterday, where it revised lower its prospects of economic growth for 2019 in both Germany (1.1% from 1.8%) and the broader euro bloc (1.3% from 1.9%). In addition, inflation in the region is now seen at 1.4% during this year (from 1.8%).
What to look for around EUR/USD
The extent and duration of the slowdown in Euroland continues to be in centre stage following recent figures from Q4 GDP in the region, the persistent negative streak from German fundamentals and the recently published EC forecasts for growth and inflation. On the political scenario, May’s EU parliamentary elections should start to gather relevance with the days, paying special attention to the potential advance of populism in the region.
EUR/USD levels to watch
At the moment, the pair is losing 0.03% at 1.1337 and a break below 1.1324 (low Feb.7) would aim for 1.1289 (2019 low Jan.24) en route to 1.1269 (monthly low Dec.14 2018). On the other hand, the next hurdle emerges at 1.1389 (55-day SMA) seconded by 1.1429 (100-day SMA) and finally 1.1442 (38.2% Fibo of the September-November drop).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.