EUR/USD Weekly Forecast – 07 March – 11 March

After the pair was initially pushed lower in the course of the last week, it managed to found significant amount of support around 1.08 handle and managed to completly rebound by the end of the week, breaking above 1.10 handle, though 1.1050 area is still offering significant amount of resistance, since it was previously important support. Next week focus will on ECB rate decision and the following Statement. We believe that some amount of support can be expected around 1.09 handle, while we would consider selling the pair at the sign of weakness near 1.1150 handle as this should now be major resistive area, if we see break above 1.1050 handle. Read more...

EUR/USD Weekly Forecast – 07 March – 11 March

Events that marked the week:

Monday's session was marked by Eurozone CPI and German Retail Sales data. Euro area annual inflation is expected to be -0.2% in February 2016, down from 0.3% in January, according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, services is expected to have the highest annual rate in February (1.0%, compared with 1.2% in January), followed by food, alcohol & tobacco (0.7%, compared with 1.0% in January), non-energy industrial goods (0.3%, compared with 0.7% in January) and energy (-8.0%, compared with -5.4% in January).

Eurozone Retail PMI at a four-month high

EUR/USD Daily Forecast – 04 March

From Eurozone, yesterday, Spanish and Italian Services PMI data was published. The Spanish service sector continued to record growth of activity, new orders and employment during February, but there were signs that the political uncertainty following December’s general election had subdued demand, leading to weaker rates of expansion. The headline seasonally adjusted Business Activity Index posted 54.1 in February, down from 54.6 in January but still signalling a solid expansion of activity during the month.