Categories: Fundamental Analysis

Greek Payment Delay Weighing on EURUSD

Greek Payment Delay Weighing on EURUSD

• EURUSD trimmed most of its gains as Greece announced that it will not be paying today’s €300m deadline for its payment to the IMF.
• German Factory orders released by the Deutsche Bundesbank posted an increase of 1.4% in April 2015, compared with the forecast of 0.5%.
• EURUSD moved lower during the European session to trade near 1.1200 where it found support.

German Factory Orders
Earlier during the London session, the German Factory orders, which is an indicator that includes shipments, inventories, and new and unfilled orders were released by the Deutsche Bundesbank. The forecast was lined up for an increase of 0.5% in April 2015, compared to the preceding month. However, the outcome was impressive, as the German Factory orders rose by 1.5%. Furthermore, the last reading was revised up from 0.9% top 1.1%.
In terms of the yearly change, the non-seasonally adjusted German Factory orders increased by 0.4%, which was a lot lower compared with the last revised reading of 2%.

Deutsche Bundesbank’s Projections
There was a report published by the Deutsche Bundesbank today, in which the bank mentioned that German economy showed an upward trend. Commenting on the same the President of the Deutsche Bundesbank, Jens Weidmann stated that “Domestic economic activity is benefitting from the favorable labor market situation and the substantial income increases”.

The most important point to note is that the Bundesbank’s economists expect Germany’s real gross domestic product (GDP) to increase by 1.7% this year.

Greek Concerns and EURUSD Reaction
EURUSD was down during the European session as Greek debt worries persist. The pair was lower by around 50 pips to trade near 1.1180. It later found support after the better-than-expected German Factory orders report. The pair is now back above 1.1240, and approaching towards 1.1280, which is a resistance area.
On the downside, the 1.1200-20 area might act as a support for EURUSD. Today, the US NFP report could cause swing moves and ignite a break in EURUSD moving ahead.

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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.

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