Categories: Fundamental Analysis

Some Relief For Euro Buyers As ZEW Sentiment Improved

The Euro finally managed to gain a few bids yesterday, as there were some important releases lined up during the London session. The main ones are the German and Euro zone ZEW economic sentiment. The end result was on the positive side, as the sentiment exceeded the forecast and jumped sharply higher compared with the last reading.

The Euro was seen trading higher against other major currencies like the US dollar and the Australian dollar.
Moving ahead, there are a few other important releases lined up during this week which might affect the Euro in the near term. The main ones to keep an eye on are the manufacturing and services PMI’s for Germany, Italy, France and the Euro zone. The market is again expecting a minor improvement this time. Let us analyze a few releases and check how the Euro might trade in the coming sessions.

German ZEW Economic Sentiment
The first important release in the Euro zone was the German ZEW economic sentiment. The forecast was slated for a rise of around 4 points from the last time decline of 3.6. However, the outcome was way above the expectation, as the German ZEW economic sentiment came in at 11.5, up by more than 15 points. The gain was appreciated in the report published as well, as the ZEW President Professor Clemens Fuest stated that “ZEW’s Indicator of Economic Sentiment for Germany has increased for the first time in 2014. The recent growth figures for the euro area suggest that the economy is stabilizing, which contributed to the indicator’s increase”.

The EURUSD pair spiked higher immediately after the release as the outcome was very bullish for the Euro. As sharp gain in the sentiment might boost the Euro in the short term and could decrease some pressure from the Euro bulls.

Euro Zone ZEW Economic Sentiment
The Euro zone ZEW economic sentiment was also released around the same time. The outcome was similar to the German one. The forecast was slated for a minor rise this time from 4.1 to 4.3. However, the outcome was much better as the Euro zone ZEW economic sentiment came in at 11, which is around 6.9 points higher in November 2014.
Overall, the outcome was on the positive side, which might continue to support the Euro in the short term. We need to see how the pair trades in the coming days, and how upcoming releases shapes out.

US PPI
There was one important release lined up in the US yesterday, as the Producer Price Index was released by the Bureau of Labor statistics. The forecast was slated for a decline of 0.1% in October 2014, compared with the preceding month. However, the outcome was above the forecast as the US PPI rose by 0.2%.

Technically, the EURUSD pair has a solid resistance around the 1.2550-80 area, which might continue to cap the upside in the pair. A break above the same could take the pair towards the 1.2700 level. On the downside, the 1.2510 level is a major swing level in the EURUSD pair in the short term.

So, keep an eye on all the important levels friends and trade accordingly.

Get my Daily Market forecast with trade opportunities HERE: Vladimir’s Markets Forecast

Advertisement

Click To Join Our Community Telegram Group

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.

Recent Posts

Weekly Summary And Review 3rd May 2024

Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of May…

3 days ago

Tech Powers Stocks Hours Away From Apple’s Results: Markets Wrap

The world’s biggest technology companies drove a rebound in stocks ahead of Apple Inc.’s earnings, with Wall Street also gearing…

4 days ago

Oil Technical Analysis And Short Term Forecast

Hi Traders! Oil technical analysis and short term forecast post is here. We do our…

4 days ago

NZDJPY Short Term Forecast Follow Up And Update

Hi Traders! NZDJPY short term forecast follow up and update is here. On February 27th…

5 days ago

EURNZD Technical Analysis And Short Term Forecast

Hi Traders! EURNZD technical analysis and short term forecast post is here. We do our…

5 days ago

GBPCAD Short Term Forecast Update And Follow Up

Hi Traders! GBPCAD short term forecast update and follow up is here. On February 7th,…

6 days ago