EUR/USD – German ZEW Economic Sentiment punches into positive territory, but euro subdued

EUR/USD continues to have a quiet week. On Tuesday, the pair is trading at 1.1297, down 0.06% on the day. On the release front, German ZEW Economic Sentiment improved to 3.1, beating the estimate of 0.9. The all-eurozone indicator followed suit, rising to 4.2, above the forecast of 1.2 points. There are no major U.S. events on the schedule. On Tuesday, the eurozone releases CPI and OPEC members hold a meeting in Vienna.

There was positive news from the ZEW economic sentiment survey, a key gauge of investor confidence. The indicator has been mired in negative territory for the past 12 months, and finally climbed into territory in April. The score of 3.1 points to slight optimism on the part of institutional investors and analysts. The eurozone indicator showed a similar trend,  climbing to 4.5 points, its first gain since May. The improvement in investor mood is attributable to the Brexit extension, which will give the parties time until October to try to reach a resolution to the deadlock. The ZEW said that investors were hopeful that the global economy would develop “less poorly” than expected. At the same time, eurozone growth remains weak and Germany is expected to cut its growth forecast for 2019, a result of a drop in exports.

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EUR/USD Fundamentals

Tuesday (April 16)

• 5:00 German ZEW Economic Sentiment. Estimate 0.9. Actual 3.1

• 5:00 Eurozone ZEW Economic Sentiment. Estimate 1.2. Actual 4.5

• 9:15 US Capacity Utilization Rate. Estimate 79.2%

• 9:15 US Industrial Production. Estimate 0.2%

• 10:00 US NAHB Housing Market Index. Estimate 63

Wednesday (April 17)

• 4:00 Eurozone Current Account. Estimate 33.2B

• 5:00 Eurozone Final CPI. Estimate 1.4%

• 5:00 Eurozone Final Core CPI. Estimate 0.8%

• 5:00 Eurozone Trade Balance. Estimate 16.8B

• All Day – OPEC Meetings

Open: 1.1305 High: 1.1314 Low: 1.1280 Close: 1.1297

 

EUR/USD Technical

EUR/USD posted small losses in the Asian session but then recovered. The pair has recorded small losses in European trade

• 1.1212 is providing support

• 1.1300 is fluid. Currently, it 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 1.1622