EURUSD Targets Fresh Highs Post Impressive German GDP

• EURUSD enjoyed a good bullish run Intraday, as the economic releases in the Euro Zone exceeded the forecast.

• German Gross Domestic Product released by the Statistisches Bundesamt Deutschland posted an increase of 1.1% in the first quarter of 2015, compared with the forecast of 1%.

• In terms of the quarterly change, the German GDP rose by 0.3%.

German GDP

Earlier during the London session, the German Gross Domestic Product, which measures the total value of all goods and services produced by Germany was released by the Statistisches Bundesamt Deutschland. The forecast was lined up for an increase of 1% in the first quarter of 2015, compared to the same quarter a year ago. However, the outcome was above the forecast, as the German GDP increased by 1.1% in the non-seasonal adjusted terms.

When we consider the quarter-over-quarter change, then the German GDP rose by 0.3%, upon price, seasonal and calendar adjustment. The report stated that the final consumption expenditure of households climbed by 0.6%, and similarly, government final consumption expenditure rose by 0.7% compared with the preceding quarter. Moreover, when we look at Capital formation, then it also posted an increase by 1.5% (machinery and equipment) and construction rose by 1.7%.

German IFO Business Climate Index

There was one more release lined up, as the German IFO Business Climate Index was published by the CESifo Group. The market was expecting it to decline from 108.6 to 108.3. However, the outcome was better-than-expected, as the German IFO Business Climate Index declined by only 0.1 point to 108.5 in May 2015.

The report stated that “companies were once again more satisfied with their current business situation, but expressed slightly less optimism about the months ahead. The German economy remains on track”.

Overall, the reports were above the forecast, which in turn helped the EURUSD pair to gain some ground. The pair traded above 1.1180 resistance level and looks set for more gains.

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Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.