The Euro received a boost in yesterday’s trading session before pulling back later in the day after the release of key data from Germany showed the post coronavirus pickup is well on the way.
The German IFO index, which is a key indicator of business conditions in Europe’s largest economy hit the market at 101.8 against analysts’ expectations for a figure of 100.6 and up from last month’s figure of 99.2.From the US, we saw the release of the latest durable goods figures which came in at 2.3% against expectations for a number of 2.7%, and although it was below consensus, was well above last month’s figure of 0.8%.
This caused the Euro to once again finish the day towards its lower end of the spectrum and with no major news out from the Eurozone today, the focus will be on data from the US with the release of the personal income and Michigan consumer sediment index. These figures are closely tied with inflation and a good round of numbers may confirm the Fed’s hawkish signals about the need for rate hikes. This is likely to determine how the Euro finishes the week.
As mentioned over the last few days, the EUR/USD bulls are going to have to see a clear break through the 200-day moving average before we see any serious upside momentum.
Once again in yesterday’s trading session this acted as a major resistance level and the currency pair was firmly rejected and finished the day in the red.
The Euro is once again making a run for this critical resistance level in today’s trading session and only disappointing data from the US will help it make the clean break to end the week.