EURO broke through $1.60 for the very first time as ECB officials voiced their continual concerns over inflation which led investors on a buying frenzy to crack through the psychological barrier which had been tested on a couple of occasions throughout the last week but had found resistance. ECB official stated that if inflation doesn’t slow next year the ECB will move rates if needed. Mersch went on to say that its getting likely the ECB will have to adjust the inflation projection upward in June despite the slowing growth in the region and continued financial market turmoil. Looking ahead for the day are German PMI Services and PMI Manufacturing with little change fore casted from March’s figures of 51.8 and 55.1 respectively. Industrial Orders for February is also out on Wednesday with forecasts of 0% growth m/m, down from 2% m/m in January.
TECHNICAL DAY FOR THE DAY
EURO is moving above the fast moving averages and now trading at record highs. currency is expected to have bull rally for the day with immediate resistance at 1.60045 levels. currency sees its support at 1.5930.the trading range is expected between 1.5940-1.60040 levels. the stochastic is in overbought levels and momentum giving downward direction giving clues of the currency to have slight downward correction in near terms.
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