The Indonesian economy is highly affected by the combination of rising US yields and higher oil prices.
EUR/USD near-term forecasts from banks
Bank’s analysts believe that any further strength in the EUR/USD exchange rate should take it into selling territory. A key resistance line, that has been touched several times since Donald Trump’s inauguration, lies at 1.0800. Any rally towards this level or above should offer an attractive opportunity to short the pair.
A release of Purchasing Manager surveys from financial information provider Markit on March 24 can offer this opportunity and push the euro towards 1.0800 area or higher. Commerzbank also highlighted this region having said that selling pressure might emerge at around 1.0829.
The bank believes that euro can weaken in the near term. European political events will likely remain a key source of downside risk for the euro with French presidential and German parliamentary elections, concerns over the outlook of Greece’s economy and extension of the ECB’s QE program.
Nomura economists expect the ECB to start communicating tapering of its QE program at September meeting. The combination of diminishing political risk premium and steps toward ECB policy normalization can lead to the EUR strengthening in the second half of the year.
Narrow bearish Ichimoku Cloud, horizontal Senkou Span A and B; a new weak golden cross of Tenkan-sen and Kijun-sen; the prices are three way bounced from the SSB’s resistance.
Today’s news headline is that Trump officially announced the withdrawal of the US from the Paris climate agreement…
The European Central Banks left its key interest rates…