Weaker recoveries were seen in both the UK manufacturing and service sectors, with the latter recording the greatest loss of momentum since July.
EUR/USD: outlook for April 24-28
2019-11-11 • Updated
EUR/USD was unable to rise above 1.0770 during the past week. The market’s attention is glued to the first round on French election on Sunday, April 23.
One the one hand, the environment seems to be favorable for the single currency: the euro area’s flash manufacturing PMIs came out strong, and the pro-euro centrist Emmanuel Macron is leading in the opinion polls. On the other hand, the polls show that far right candidate Marie Le Pen and hard left challenger Jean-Luc Melenchon are not far behind. As a result, the vote’s outcome still looks unpredictable and contains risks for the euro.
If Macron manages to rank first or second in Sunday’s election, investors will sigh with relief as he is seen easily winning the runoff vote on May 7. In this case, the euro will jump. Potential targets lie at 1.0830 (February high) and 1.0900 (March high). If Macron doesn’t pass to the next tour, we’ll see another test of support at 1.0600 and likely the psychological support at 1.0500. If this latter level is broken, then EUR/USD will be vulnerable for a test of 2017 low in 1.0350 area.
Among other events, which will drive the euro’s value in the coming days we should focus on the European Central Bank’s meeting on Thursday. After the previous ECB meeting on March 9 investors increased expectations for the central bank’s policy tightening in the foreseeable future. At the end of March. However, these expectations have evaporated. This time the press conference of president Mario Draghi will get special attention of Forex traders and we expect a spike in volatility. In addition, don’t miss the ECB’s flash inflation figures for April on Friday.
What is happening? 1. USD/CHF and EUR/CHF are on the bullish rally for over a week.
We will remember the past week for the surge in the US inflation and the soothing comments of the Federal Reserve’s Chair Jerome Powell…
What will happen? Amazon announced the company is going to make a 1 – 20 stock split on June 3 after the trading session close (23:30 GMT+3)…
How to understand if an economy is accelerating or decelerating? What are the indicators that can guide us in this interpretation? One of the ways in which we can assess this situation is precisely the household consumption, which fundamentally refers to…
Credit cycles (or leverage cycles) represent moments in the economy of a country when families and companies get indebted, in order to invest or to spend in different segments, which ends up positively influencing the level of the general economic…