The single currency of the European Union region fluctuated in a narrow upward range during the Asian session, reversing its seventh session in 11 sessions since May 23, when its lowest since May 19 of 2017 against the US dollar on the eve of Developments and economic data expected Thursday by the economies of the euro zone and the US economy, the largest economy in the world.
At 4:17 am GMT, the EURUSD rose 0.04% to 1.1292 compared to the opening at 1.1287, after reaching a high of 1.1298, while reaching a low of 1.1287.
Investors are looking for Germany, the biggest economy in the euro area, to release the final CPI reading, which could reflect a stable growth of 0.2%, unchanged from the previous April reading and 1.0% in March before seeing the third largest economy The region of Italy released a reading of the Unemployment Rate, which may reflect a decline to 10.4% compared to 10.6% in the fourth quarter.
Markets are also looking for Euro zone economies to release the seasonally adjusted Industrial Production Index, which could reflect a widening of the decline to 0.4% versus 0.3% in the previous March reading. % In the previous annual reading for the month of March.
This comes in conjunction with Eurogroup meetings attended by the President of the Euro Group, the Ministers of Finance of the Euro-Zone Member States, the Commissioner of Economic and Monetary Affairs, as well as the ECB Governor, which discusses various financial issues such as the euro support mechanisms and government funding. And its government budget this year amid speculation the European Union will impose disciplinary measures against Italy.
Italian Prime Minister Giuseppe Conti said last week that his government was seeking to cut the budget deficit for 2019 to 2.1 percent of its gross domestic product (GDP) to avoid disciplinary action by the European Union, hours after Italian Finance Minister Giovanni Treya said Monday The past expressed confidence in the chances of reaching an agreement with the European Commission on the Italian budget.
On the other hand, the markets are currently waiting for the US economy to reveal the reading of the index of claims for the week of June 7, which may reflect a decrease of 3 thousand applications to 215 thousand requests, in conjunction with the publication of the import price index, which may reflect a decline 0.3% versus 0.3% in April, while the same year's annual reading may show a 1.4% drop to 0.2%.
"The euro and other currencies are being devalued against the dollar, which makes their country in a very disadvantageous position," he said, echoing the Federal Reserve's policy of high interest rates. On the federal funds, where he chirps that "the interest rate is too high, reinforcing the absurd quantitative emphasis, they have no idea."
Trump's comments came a week before the FOMC meeting on June 17-18, in which monetary policy makers were expected to reveal their expectations for growth, inflation and unemployment, as well as the future interest rates for the next three years. Recent speculation has grown that the Fed may later offer a cut in federal funds rates.
Technical Analysis
EURUSD extended slightly negative trading yesterday to close the first pivotal support test at 1.1255, where the price is affected by stochastic negativity, but the SMA 50 continues to provide positive support for the price, keeping the bullish scenario intact for the coming period, awaiting the key test of 1.1443.
Keep in mind that breaking 1.1255 and 1.1180 will halt the expected rally and press the price to resume the medium term bearish trend.
The trading range for today is among the key support at 1.1230 and resistance at 1.1380.
The general trend for today is bullish.