(News Bulletin 247) – This article, with open access, is produced by the stock market analysis and strategy research team at News Bulletin 247. To ensure you don’t miss any opportunities, consult all the analyzes and discover our portfolios by accessing our Privileges area.
Momentarily, NVidia’s excellent quarterly report will have infused even the exchange rates, where the Euro, the reference barometer of risk appetite, will have accelerated against the Dollar, after crossing its 20-day moving average. In the immediate future, forces tend to balance around a pivot zone close to $1.80.
In terms of statistics on Thursday, currency traders took note of the very first estimates of PMI activity indicators for the Euro Zone in February. If industry disappoints (46.1), services surprise positively, regaining 50 points, the threshold which by construction separates an expansion from a contraction of the sector considered.
“There is a glimmer of hope as the eurozone heads towards recovery. This is particularly visible in the services sector,” comments Norman Liebke, Economist at Hamburg Commercial Bank. “The corresponding HCOB PMI index is now at 50 points and has therefore stopped falling for the first time since July last year. The latest PMI figure gives hope for a recovery in the Eurozone, […]. There is also some optimism in the latest employment figures, which grew at a faster pace than in the previous month.
Nevertheless, tempers Mr. Liebke, “Germany constitutes a brake on the growth of the euro zone. While France is recovering more strongly both in the services and in the manufacturing sectors, Germany is lagging behind. The sector of “Service exports particularly stimulated France in February, while slowing down Germany. A possible explanation for this could be the increase in tourist activity, from which France benefits much more than Germany.”
In the process, Nomura analysts reaffirmed that “the ECB will start reducing rates in June”.
No surprises to report on the final CPI (consumer price index) data in the Euro Zone, with no deviation from the first estimates. On an annual basis, prices, excluding food, energy, alcohol and tobacco, increased by 3.3%.
Across the Atlantic, weekly registrations for unemployment benefits fell, close to the threshold of 200,000 new units, materializing and confirming the tensions on the private employment market.
No surprises regarding the publication this morning of the IFO business climate index in Germany, perfectly in line with market expectations at 85.5 points. The tool for measuring the economic cycle continues to position itself in “crisis” in their matrix.
At midday on the foreign exchange market, the Euro was trading at around $1.0825.
KEY GRAPHIC ELEMENTS
The 20-day moving average (in dark blue), which until now conveniently served us as a trailing stop, has been clearly exceeded. We therefore no longer offer short positions, and remain on the lookout for a new attractive entry point.
MEDIUM TERM FORECAST
Considering the key graphical factors that we have mentioned, our opinion is neutral in the medium term on the Euro Dollar (EURUSD).
We will maintain this neutral opinion as long as Euro Dollar (EURUSD) prices are positioned between support at 1.0810 USD and resistance at 1.0940 USD.
News Bulletin 247 advice
DAILY DATA CHART
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
