The most important event during the previous week was the FOMC meeting. The Fed left interest rates unchanged, as was expected. In an after-the-meeting statement, the FOMC members noted that they will stay committed to their dual mandate, bringing inflation toward targeted 2% and maximum employment. Still, considering ongoing challenges for the economy, especially those related to trade tariffs, the Fed Chair Powell noted that the Fed will be ready to act immediately if threats to the economy emerge in the future period. As for macro data published during the week, the US ISM Services PMI was standing at 51,6 in April, above market consensus of 50,6. The Balance of Trade reached $-140,5B, which represents a higher deficit from forecasted $-137B.
The Factory Orders in Germany were higher by 3,6% in March, beating market expectations at 1,3%. The HCOB Construction PMI in April in the Euro Zone reached the level of 46, while the same indicator for Germany was at the level of 45,1. The Retail Sales in the Euro Zone in March dropped by -0,1% for the month, reaching a 1,5% increase on a yearly basis. The Balance of Trade in Germany reached euro 21,1B in March, higher from forecasted euro 20,8B. The Industrial Production in Germany in March was higher by 3% for the month, significantly above market expectation of 0,5%.
As expected, the FOMC meeting caused higher volatility on financial markets. Currently, the most sensitive topics are related to further decrease of the US interest rates and potential negative impact of trade tariffs on the US economy. Since Fed Chair Powell brought some confidence to market participants that the Fed is ready to react in case of worsening economic conditions, the US Dollar gained in strength. The eurusd currency pair started the week around the level of 1,1370 and moved to the downside for the rest of the week, ending it at 1,1248. The RSI started its stronger move toward the level of 50, indicating the potential that the market will soon look at the oversold market side. The MA50 continues to strongly diverge from MA200, confirming further the cross occurred some time ago.
The US April inflation figures are scheduled for a release on Tuesday next week. Depending on figures, there is some probability of higher market volatility. The support line at 1,12 has been shortly tested during the previous week. The start of the week ahead might bring some further testing of this level. In case that this level is broken to the downside, then the next supporting level will be at 1,11, but this is not a significant level, on a historical scale of eurusd movements. There is also an equal probability that the market will shortly revert to the upside, when 1,13 might be tested for one more time.
Important news to watch during the week ahead are:
EUR: ZEW Economic Sentiment Index for May for the Euro Zone and Germany, Inflation Rate in Germany, final for April, Industrial Production in the EuroZone, GDP Growth Rate Q/Q, second estimate for Q1,
USD: Inflation Rate in April, Producers Price Index in April, Industrial Production in April, Building Permits preliminary for April, Michigan Consumer Sentiment preliminary for May
The Factory Orders in Germany were higher by 3,6% in March, beating market expectations at 1,3%. The HCOB Construction PMI in April in the Euro Zone reached the level of 46, while the same indicator for Germany was at the level of 45,1. The Retail Sales in the Euro Zone in March dropped by -0,1% for the month, reaching a 1,5% increase on a yearly basis. The Balance of Trade in Germany reached euro 21,1B in March, higher from forecasted euro 20,8B. The Industrial Production in Germany in March was higher by 3% for the month, significantly above market expectation of 0,5%.
As expected, the FOMC meeting caused higher volatility on financial markets. Currently, the most sensitive topics are related to further decrease of the US interest rates and potential negative impact of trade tariffs on the US economy. Since Fed Chair Powell brought some confidence to market participants that the Fed is ready to react in case of worsening economic conditions, the US Dollar gained in strength. The eurusd currency pair started the week around the level of 1,1370 and moved to the downside for the rest of the week, ending it at 1,1248. The RSI started its stronger move toward the level of 50, indicating the potential that the market will soon look at the oversold market side. The MA50 continues to strongly diverge from MA200, confirming further the cross occurred some time ago.
The US April inflation figures are scheduled for a release on Tuesday next week. Depending on figures, there is some probability of higher market volatility. The support line at 1,12 has been shortly tested during the previous week. The start of the week ahead might bring some further testing of this level. In case that this level is broken to the downside, then the next supporting level will be at 1,11, but this is not a significant level, on a historical scale of eurusd movements. There is also an equal probability that the market will shortly revert to the upside, when 1,13 might be tested for one more time.
Important news to watch during the week ahead are:
EUR: ZEW Economic Sentiment Index for May for the Euro Zone and Germany, Inflation Rate in Germany, final for April, Industrial Production in the EuroZone, GDP Growth Rate Q/Q, second estimate for Q1,
USD: Inflation Rate in April, Producers Price Index in April, Industrial Production in April, Building Permits preliminary for April, Michigan Consumer Sentiment preliminary for May
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.