From economic data the US inflation was in the spotlight of the financial markets during the previous week. The US inflation in April reached 0,2% for the month, and 2,3% on a yearly basis, which was fully in line with market expectations. The Core inflation was standing at the level of 0,2% for the month and 2,8% for the year. The Producers Price Index in April was -0,5%, which was significantly below market estimate of 0,2%. Retail Sales in April were higher by 0,1% for the month modestly above the forecasted 0%. Building Permits preliminary for April were 1.412M, below market estimate of 1.450M, while Housing Starts in April were also below market estimate, with 1.362, while market was expecting to see the figure of 1.37M. The end of the week brought University of Michigan Consumer Sentiment index preliminary for May, which was standing at the level of 50,8, modestly below forecasted 53,4. There has been a modest increase in 5 years inflation expectations to the level of 4,6%, from 4,4% previously posted. There has also been increased expectations for the inflation for this year, which reached the level of 7,3%, from 6,5% posted previously.
This week there has not been too much significant macro data posted for the Euro Zone. The ZEW Economic Sentiment Index in May in Germany was standing at 25,2 which was surprisingly much higher from anticipated 12,5. The same indicator for the Euro Zone was at the level of 11,6 again above market expectations of -6.
The previous week started in favor of the US Dollar against euro, due to decreased tariffs tensions between the US and China. Still, volatility continued for the rest of the week. The highest weekly level of the currency pair was 1,1263, while the pair is ending the week at the level of 1,1164. The RSI was relatively calmly moving around the level of 50, still closing the week at the level of 46. This is an indication that the investors are modestly eyeing the oversold market side in the coming period. The MA50 is still modestly diverging from MA200, without a clear indication that the change of course might happen in the coming period.
Charts are indicating that the market was testing the 1,12 level during the previous week. This could be also treated as a level with historical significance, considering that the currency pair historically spent a lot of time around this level. Considering that the week ahead is not bringing much of the currently significant data, which markets closely watch, it could be expected that it is going to be one calm week. However, it should be taken into account news published on Saturday, that the rating agency Moody’s downgraded US credit rating by one notch. This news is still not reflected in the eurusd currency pair, which might indicate some higher volatility at the start of trading hours on Monday. This would be a one-off effect. As per current charts, if the level 1,12 withholds pressure to the downside, then the market could revert toward the 1,13 level. In the opposite case, charts are indicating the level of 1,1050.
Important news to watch during the week ahead are:
EUR: Inflation rate final for April in the EuroZone, Producers Price Index in Germany in April, HCOB manufacturing PMI Flash for May for both Germany and the Euro Zone, Ifo Business Climate for Germany in May, GDP Growth rate for Germany final for Q1
USD: Existing Home Sales in April
This week there has not been too much significant macro data posted for the Euro Zone. The ZEW Economic Sentiment Index in May in Germany was standing at 25,2 which was surprisingly much higher from anticipated 12,5. The same indicator for the Euro Zone was at the level of 11,6 again above market expectations of -6.
The previous week started in favor of the US Dollar against euro, due to decreased tariffs tensions between the US and China. Still, volatility continued for the rest of the week. The highest weekly level of the currency pair was 1,1263, while the pair is ending the week at the level of 1,1164. The RSI was relatively calmly moving around the level of 50, still closing the week at the level of 46. This is an indication that the investors are modestly eyeing the oversold market side in the coming period. The MA50 is still modestly diverging from MA200, without a clear indication that the change of course might happen in the coming period.
Charts are indicating that the market was testing the 1,12 level during the previous week. This could be also treated as a level with historical significance, considering that the currency pair historically spent a lot of time around this level. Considering that the week ahead is not bringing much of the currently significant data, which markets closely watch, it could be expected that it is going to be one calm week. However, it should be taken into account news published on Saturday, that the rating agency Moody’s downgraded US credit rating by one notch. This news is still not reflected in the eurusd currency pair, which might indicate some higher volatility at the start of trading hours on Monday. This would be a one-off effect. As per current charts, if the level 1,12 withholds pressure to the downside, then the market could revert toward the 1,13 level. In the opposite case, charts are indicating the level of 1,1050.
Important news to watch during the week ahead are:
EUR: Inflation rate final for April in the EuroZone, Producers Price Index in Germany in April, HCOB manufacturing PMI Flash for May for both Germany and the Euro Zone, Ifo Business Climate for Germany in May, GDP Growth rate for Germany final for Q1
USD: Existing Home Sales in April
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.
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.