EURUSD Opened Higher to Start Monday trading
Euro Subdued as France, Italian Markets on Holiday
EURUSD Opened Higher This morning at 09:40 GMT, the EUR is trading at 1.1168 against the USD, a tad higher from the New York close. Looking ahead, investors would closely monitor Eurozone’s ZEW survey for economic sentiment for August, due to release tomorrow. This morning, the pair traded at a high of 1.1175 and a low of 1.1152. The Euro traded 0.36% lower against the US Dollar in the New York session on Friday, with the pair closing the session at 1.1165. The pair is expected to its find support at 1.1134 and its first resistance at 1.1212.
The euro is showing limited movement on Monday, as EUR/USD trades at 1.1170. With French and Italian markets on holidays, we can expect an uneventful day from the pair. There are no Eurozone events on the schedule. Later in the day, the US will release the Empire State Manufacturing Index, with the indicator expected to improve to 2.1 points. Tuesday promises to be busier, with the release of German ZEW Economic Sentiment. The key indicator plunged in July by 6.8 points, reflecting market turmoil after the surprise Brexit vote in late June. Also on Tuesday, the US will release Building Permits and consumer inflation reports.
Germany’s economy expanded 0.4% in the second quarter, within expectations. However, this figure was considerably weaker than the 0.7% gain in the first quarter. As the largest economy in the Eurozone, German numbers are often a bellwether for the Eurozone. With the after-effects of the Brexit vote just beginning to be measured, third quarter numbers, including Eurozone GDPs, could drop considerably. On the inflation front, deflation remains a major concern. German CPI and WPI posted small gains of 0.3% and 0.2% respectively, as Eurozone inflation numbers are nowhere near the ECB target of about 2%. France, the number two economy in the Eurozone, saw Final CPI decline 0.4% in July, marking the first decline since January. Recent monetary moves by the BoE, which lowered interest rates and expanded asset purchases, has put further pressure on the ECB to follow suit with further easing.Click here for reuse options!
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