The single currency of the European Union region fluctuated in a narrow upward range during the Asian session to see its rebound for a third consecutive session from its May 30, 2017 low against the US dollar on the brink of economic developments and data expected on Tuesday by Eurozone economies The US economy is the largest economy in the world.
At 05:12 GMT, the EURUSD rose 0.03% to 1.1189, compared to the opening at 1.1186, after the pair reached a high of 1.1193 and a low of 1.1179.
The markets are currently looking at the French economy, the region's second-largest economy, to reveal first-quarter growth data with the preliminary reading of the GDP index, which may reflect a stable growth of 0.3%, unchanged from the previous quarter, The index's annual growth accelerated to 1.1% versus 1.0% in the annual reading for the fourth quarter.
This comes before Germany's biggest economy is seeing the reading of the import price index, which may reflect a stability of 0.3%, unchanged from last February, while the annual reading of the same index may show that growth accelerated to 2.1% 1.6%, in conjunction with the disclosure of a statistical reading of the German consumer confidence index GFK, which may reflect the contraction of the breadth to the value of 10.3 compared to 10.4 in April.
France's inflation data may also be seen with the CPI reading, which may reflect a slower pace of growth to 0.3% versus 0.8% in March, in conjunction with the release of the French consumer spending index, which may reflect a 0.4% rise versus a drop 0.4% in February, and with the disclosure of the French treasury budget for last month.
To reveal the growth data for the fourth largest economy of the euro area Spain with the initial reading of the GDP index, which may reflect the stability of growth of 0.6%, not significantly changed from the fourth quarter, in conjunction with the release of Spain's preliminary annual CPI which may show accelerated growth To 1.5% versus 1.3% in the previous annual reading for March.
This comes ahead of the German Unemployment Change, which may show a contraction of 6K to 7K in March, ahead of the release of inflation data for Germany with the release of the Consumer Price Index preliminary reading, which may reflect a rapid growth rate of 0.5% vs. 0.4 In March, and Italy's unemployment reading, which may show a drop to 10.6% from 10.7% in February.
We may also see growth data for the whole eurozone as the GDP reading is released, which could reflect growth acceleration to 0.3% vs. 0.2% in the fourth quarter, while the annual reading of the index itself may show a 1.1% growth stability. Unemployment is also reading for the region, which could stabilize at 7.8%, unchanged from February.
To reveal the growth data for the third largest economy of the euro area Spain with the initial reading of the GDP index, which may reflect contraction of the contraction to 0.1% compared to 0.2% in the fourth quarter, following the preliminary reading of the CPI of Italy, which may show the stability of growth at 0.3%, unchanged from the previous reading for March.
On the other hand, investors are waiting for the US economy to read the Labor Cost Index, which may reflect a stable 0.7% growth, unchanged from the fourth quarter, before we see housing market data released with the S & P House Price Index May show acceleration of growth to 0.2% from 0.1% in February, and the same annualized reading showed growth accelerated to 3.7% versus 3.6%.
Leading to the Chicago PMI reading, which could extend to 59.1 vs. 58.7 in March, before we see the Existing Home Sales reading, which may show a 1.1% rise from 1.0% in February, Reading consumer confidence, which could rise to 126.2 versus 124.1 in March.
This comes on the eve of the opening of the FOMC meeting in late April and early May amid expectations that Fed monetary policy makers will keep short-term benchmark interest rates at between 2.25% and 2.50% and work to reduce Cut bond purchases before they are frozen by September.
It is expected to see after the meeting of the Federal Committee, which is held today and Wednesday in Washington, the press conference of the Governor of the Federal Reserve Jerome Powell, who recently said that the Committee will be patient about raising the rate of federal funds in the coming period, before the Committee retreat last month of its expectations To raise interest this year while maintaining its expectations of raising it once next year.
Technical Analysis
The EUR / USD pair is now trading positively above the 1.1180 level, where the price is positively affected by Stochastic, and is likely to test the most important resistance at 1.1250 before returning to the downside again.
In general, we continue to push the downside if the above mentioned resistance is not breached, as the SMA 50 continues to press the price negatively.