Thursday is a big day for the EUR/USD and it has started off with positive news for the Euro currency!
The EUR/USD pair had uninspiring trading action on Wednesday
and remained limited, but the release of better-than-anticipated Euro-zone
industrial production figures, which rose 0.1% in September, provided a small
boost for the shared currency.
Earlier today, increased spending by German consumers and
government bodies helped Germany’s economy dodge a recession, today’s GDP
report has shown. Germany has defied negativity by expanding its GDP by 0.1% in
the third quarter of this year, which means Europe’s largest economy has
stopped contracting, after suffering a 0.2% contraction in April-June.
Later in today’s session, there is another revision of
European GDP figures from the wider Euro zone along with employment data for
the euro zone, this will follow a speech by ECB’s De Guindos and there is no
doubt that the markets will be fully focused for any new indications.
The outlook in Euroland remains delicate and justifies the
current monetary stance from the ECB and the bearish view on the Euro currency
in the medium term at least. The fact that the German economy has avoided
recession in Q3 is expected to bring in some temporary relief to the Euro but
the selling pressure may well continue.
The markets may experience moves immediately after the
release of high impact economic news, which can offer traders excellent
short-term trading opportunities. Positive or negative reports will affect
market sentiment which can create new trends and trading opportunities.
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