Weak data was published today in Germany by IFO. According to the review of 7,000 companies, the Business Climate Index decreased from 111.3 to 110.7 points, while analysts predicted a decrease to 111 points.
Business Expectations Index decreased from 108.3 to 106.4 points, while experts expected a decrease to 107.6 points.
Meanwhile, German Current Assessment improved and grew from 114.4 to 115.2 in March, which surpassed economists’ expectations, who predicted a growth to 114.6 points only.
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Weak data from Germany led to correction of EURUSD, which dropped to 1.3800.
Comments of Jens Weidmann, the Governor of the Bundesbank, regarding the consequences of the extremely high rate of euro, applied a negative pressure on EURUSD. Euro’s positions grew by 7% in last 12 months in comparison to the US dollar, which led to the curbing of import prices and made European exporters less competitive.
European officials are talking about the “overbought” status of euro as well, which gives a negative signal for EURUSD bulls.
ECB will conduct a meeting on Thursday, April 3. New stimulation measures for Eurozone can be defined during the meeting. They can lead to the significant correction of EURUSD.
Situation on the futures market related to EURUSD doesn’t favor euro’s positions as well.
According to the report by the U.S. Commodity Futures Trading Commission, namely COMMITMENTS OF TRADERS, the net positions of hedgers (blue on the chart) was decreasing since the middle of the last week and got to -38,443.00 contracts, meanwhile in the beginning of February 2014 this number was 40,955.00. A decrease of the net positions of hedgers indicates that market participants expect a decrease of the EURUSD rate in the nearest future.
Click on the image to see full-size
A significant increase of the long positions by large speculators (green on the chart) also indicates further decrease of EURUSD.
EURUSD can continue its decrease from the technical point of view as well. If 1,37700 is breached, then EURUSD can get corrected and reach 1.3700 and 1.36666.
However, if pair manages to secure its positions above 1.3800, bulls can receive a chance to take it to 1.38200, 1.38400 and 1.39050.
Click on the image to see full-size - See more at: https://www.mayzus.com/economical-news/weak-data-from-germany-applied-pressure-on-eurusd.html#sthash.vvCLSz8k.dpuf
Business Expectations Index decreased from 108.3 to 106.4 points, while experts expected a decrease to 107.6 points.
Meanwhile, German Current Assessment improved and grew from 114.4 to 115.2 in March, which surpassed economists’ expectations, who predicted a growth to 114.6 points only.
Click on the image to see full-size
Weak data from Germany led to correction of EURUSD, which dropped to 1.3800.
Comments of Jens Weidmann, the Governor of the Bundesbank, regarding the consequences of the extremely high rate of euro, applied a negative pressure on EURUSD. Euro’s positions grew by 7% in last 12 months in comparison to the US dollar, which led to the curbing of import prices and made European exporters less competitive.
European officials are talking about the “overbought” status of euro as well, which gives a negative signal for EURUSD bulls.
ECB will conduct a meeting on Thursday, April 3. New stimulation measures for Eurozone can be defined during the meeting. They can lead to the significant correction of EURUSD.
Situation on the futures market related to EURUSD doesn’t favor euro’s positions as well.
According to the report by the U.S. Commodity Futures Trading Commission, namely COMMITMENTS OF TRADERS, the net positions of hedgers (blue on the chart) was decreasing since the middle of the last week and got to -38,443.00 contracts, meanwhile in the beginning of February 2014 this number was 40,955.00. A decrease of the net positions of hedgers indicates that market participants expect a decrease of the EURUSD rate in the nearest future.
Click on the image to see full-size
A significant increase of the long positions by large speculators (green on the chart) also indicates further decrease of EURUSD.
EURUSD can continue its decrease from the technical point of view as well. If 1,37700 is breached, then EURUSD can get corrected and reach 1.3700 and 1.36666.
However, if pair manages to secure its positions above 1.3800, bulls can receive a chance to take it to 1.38200, 1.38400 and 1.39050.
Click on the image to see full-size - See more at: https://www.mayzus.com/economical-news/weak-data-from-germany-applied-pressure-on-eurusd.html#sthash.vvCLSz8k.dpuf
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