EURUSD This Morning is expected to its find support at 1.1253
- EURUSD This Morning at 09:40 GMT, the EUR is trading at 1.1280 against the USD, 0.27% lower from the New York close.
- On the economic front, Germany’s seasonally adjusted final GDP remained steady at 0.4% on a quarterly basis in 2Q 2016, at par with market expectations.
- This morning, the pair traded at a high of 1.1313 and a low of 1.1273. The Euro traded 0.24% lower against the US Dollar in the New York session yesterday, with the pair closing the session at 1.1310. The pair is expected to its find support at 1.1253 and its first resistance at 1.1328.
Eurozone businesses intend to increase investment spending
EURUSD This Morning Eurozone businesses plan to raise their investment spending despite the U.K.’s June vote to leave the European Union, according to a survey by Swiss bank UBS Group AG.
That finding chimes with the results of other surveys during the eight weeks since the British referendum, which have registered little negative impact on the eurozone economy.
Before the June 23 poll, economists had feared that a vote to depart the EU could weaken business confidence across the bloc, and cause executives to put some investment plans on hold until the future economic relationship between the U.K. and the remaining 27 members became clearer.
The survey “suggests that at least the initial reaction among eurozone corporates to the U.K. vote has been relatively measured,” they wrote in a report. “This is encouraging.”
A monthly survey by the European Commission found eurozone businesses became more upbeat about their prospects in July, although it doesn’t quizz firms about their investment plans. A separate survey of purchasing managers by data firm IHS Markitfound private-sector activity increased at a slightly faster pace in August.
Minutes from their July meeting recorded that European Central Bank policy makers believed the Brexit vote had created “new headwinds” for the eurozone economy, but wanted to wait until the extent of the economic disruption became clearer before deciding whether to provide additional stimulus.