The single currency of the European Union region fluctuated in a narrow upward range during the Asian session to see its rebound for the third session in five sessions from its lowest since May 19, 2017 against the US dollar on the eve of developments and economic data expected Wednesday by the economies of the region The euro and the US economy are the largest economy in the world.
At 04:25 GMT, the EURUSD rose 0.04% to 1.1164, compared to the opening at 1.1160, the pair's low during the session, while the highest at 1.1172.
The markets are looking for France, the second largest economy in the euro area, to reveal the final reading of the Gross Domestic Product (GDP), which could reflect stable growth of 0.3%, unchanged from the previous quarter. % Unchanged from the annual reading for the fourth quarter.
This comes in tandem with the release of inflation data for the region's second largest economy with the release of the preliminary reading of the consumer price index, which may show a stable growth of 0.3%, unchanged from last April, and the publication of the French consumer spending index, which may reflect a rise 0.5% versus 0.1% in March.
The German central bank governor Jean Widman gave a speech under the title "Prometheus and Epimetheus in the digital age" at a payment seminar in Frankfurt, before we see the reading of the change in unemployment from Germany, the largest economy in the region, which may show a contraction of the decline to 8 thousand versus 12 thousand In April, before the disclosure of the semi-annual financial stability review report by the European Central Bank.
Other than that, we have followed this week the report that the German Chancellor Angela Merkel decided to stay in power until 2021 because she believes that her successor candidate for that position Kramp Carnabauer is not suitable for that position and is not qualified to be the German Chancellor succeeding, Bloomberg News that the German Chancellor is scheduled to step down as a leader of the Christian Democratic Union.
In another context, Italian Deputy Prime Minister Matteo Salveni said that the rules of the European Union should, aimed at reducing unemployment levels rather than reducing the government deficit, explaining that the rules should not aim to reduce the budget deficit of the government less than three percent, adding that it is not from Italian bond yields are expected to be higher than in other countries.
In the same vein, Salvini also noted that he would do his best to change the EU's financial rules, which he considers outdated and no longer valid and must be changed, commenting on the report that the European Commission has introduced disciplinary measures against Italy because of its public finances , Followed by Vice-President of the European Commission Pierre Moscowevi on his refusal to impose sanctions on the Commission on Italy.
On the other hand, investors are looking for the US economy to unveil the Chicago PMI, which may reflect a widening to a value of 6 to 3 in April, just hours before the second reading of Q1 GDP, which may reflect widening The world's largest economy was up 3.1% from the previous preliminary reading, which showed 3.2% growth in the last quarter.
Technical Analysis
The pair managed to break the 1.1180 level and closed the daily candle below it, which supports the continuation of our bearish outlook for the coming sessions, noting that Stochastic is providing a negative cross signal to stimulate the pair to achieve further bearishness over the short and short term, The first one is located at 1.1100.
We note that breaking the target level will push the price towards 1.1000 as the next major station, while stability below 1.1255 is an important condition for the continuation of the suggested decline.
The trading range for today is expected between 1.1080 and 1.1215 support
The general trend for today is bearish