Back
3 May 2013
Forex: EUR/USD extending gains after EU growth forecasts
FXstreet.com (Barcelona) - The EUR/USD jumped to 1.3131 high as the economic growth forecasts by the European Commission were released, quickly followed by profit taking to 1.3118, but now the pair is extending higher as the report indicates that the EU economy is slowly recovering from a protracted recession, with a forecast annual GDP growth at -0.1% in the EU and at -0.4% in the euro area. For 2014, economic activity is projected to expand by 1.4% in the EU and 1.2 % in the euro area.
Olli Rehn, Commission Vice-President for Economic and Monetary Affairs and the Euro said: "In view of the protracted recession, we must do whatever it takes to overcome the unemployment crisis in Europe. The EU’s policy mix is focused on sustainable growth and job creation. Fiscal consolidation is continuing, but its pace is slowing down. In parallel, structural reforms must be intensified to unlock growth in Europe."
EMU PPI fell -0.2% as expected in March, but its YoY came in at 0.7% instead of 0.6% because data in the prior month was revised higher from 1.3% to 1.4%.
“Price action has formed a bearish Evening Star formation on the daily chart on EURUSD. Although there has been mild buying from the low (1.3036), this is seen as a profit taking correction. The profit targets are 1.3036, 1.2965 and towards 1.2914”, wrote Ian Coleman, analyst at First4Trading.
Olli Rehn, Commission Vice-President for Economic and Monetary Affairs and the Euro said: "In view of the protracted recession, we must do whatever it takes to overcome the unemployment crisis in Europe. The EU’s policy mix is focused on sustainable growth and job creation. Fiscal consolidation is continuing, but its pace is slowing down. In parallel, structural reforms must be intensified to unlock growth in Europe."
EMU PPI fell -0.2% as expected in March, but its YoY came in at 0.7% instead of 0.6% because data in the prior month was revised higher from 1.3% to 1.4%.
“Price action has formed a bearish Evening Star formation on the daily chart on EURUSD. Although there has been mild buying from the low (1.3036), this is seen as a profit taking correction. The profit targets are 1.3036, 1.2965 and towards 1.2914”, wrote Ian Coleman, analyst at First4Trading.