24 Mar 2014
EUR/USD consolidating around 1.3770
FXStreet (Edinburgh) - The shared currency is now trying to consolidate after the post-PMI decline, with the EUR/USD now meandering around 1.3770/65.
EUR/USD attention to ZEW
With the manufacturing and services PMIs now in the rear mirror, market participants would turn their focus on tomorrow’s German ZEW Survey. Spot would remain under pressure however, as market consensus expects Business Climate and Expectations components to come in a tad lower for the current month, while Current Assessment would marginally improve. Martin van Vliet, Analyst at ING Bank NV, assessed “the further weakening in the Chinese PMI and the relatively strong euro do not bode well for export growth momentum going forward and with unemployment still elevated and fiscal policy still contractionary, a strong revival in domestic demand seems unlikely going forward. That said, the further signs of recovery will encourage the ECB in refraining from further monetary easing, at least in the short term”.
EUR/USD significant levels
The pair is now losing 0.15% at 1.3773 and a breach of 1.3749 (low Mar.20) would open the door to 1.3722 (50% of 1.3477-1.3967) and finally 1.3720 (low Mar.6). On the upside, the initial hurdle aligns at 1.3827 (high Mar.24) ahead of 1.3845 (high Mar.20) and then 1.3862 (10-d MA).
EUR/USD attention to ZEW
With the manufacturing and services PMIs now in the rear mirror, market participants would turn their focus on tomorrow’s German ZEW Survey. Spot would remain under pressure however, as market consensus expects Business Climate and Expectations components to come in a tad lower for the current month, while Current Assessment would marginally improve. Martin van Vliet, Analyst at ING Bank NV, assessed “the further weakening in the Chinese PMI and the relatively strong euro do not bode well for export growth momentum going forward and with unemployment still elevated and fiscal policy still contractionary, a strong revival in domestic demand seems unlikely going forward. That said, the further signs of recovery will encourage the ECB in refraining from further monetary easing, at least in the short term”.
EUR/USD significant levels
The pair is now losing 0.15% at 1.3773 and a breach of 1.3749 (low Mar.20) would open the door to 1.3722 (50% of 1.3477-1.3967) and finally 1.3720 (low Mar.6). On the upside, the initial hurdle aligns at 1.3827 (high Mar.24) ahead of 1.3845 (high Mar.20) and then 1.3862 (10-d MA).