Back
18 Mar 2014
EUR/USD tests 1.3890 on poor ZEW
FXStreet (Edinburgh) - The single currency accelerated its selling interest on Tuesday, with the EUR/USD dropping to fresh lows around 1.3890.
EUR/USD weaker on ZEW
The pair briefly dipped to the 1.3890 region after the German ZEW Survey missed expectations for the month of March, with Economic Sentiment coming in at 46.6 vs. 53.0 expected and February’s 55.7. The Current Situation component also came in short of estimates at 51.3 vs. 52.0 forecasted. In the same line, EMU’s Economic Sentiment fell to 61.5 vs. 67.3 surveyed and 68.5 previous and January’s trade surplus narrowed to €0.9 billion. “ The German ZEW index dropped in March, reflecting increasing uncertainty from latest events in the Ukraine and Russia… Turning to the facts, no matter how delicate the current political relationship with Russia might be, the short-term impact on the German economy should be limited. Growth in the first quarter should remain unharmed. However, looking beyond the first quarter, latest events and possible upcoming measures will put the German recovery to a serious test”, assessed Analyst Carsten Brzeski at ING Bank NV.
EUR/USD key levels
At the moment the pair is losing 0.14% at 1.3902 with the next support at 1.3879 (low Mar.17) ahead of 1.3873 (10-d MA) and then 1.3848 (low Mar.14). On the flip side, a break above 1.3938 (high Mar.18) would target 1.3948 (high Mar.17) en route to 1.3967 (2014 high Mar.13).
EUR/USD weaker on ZEW
The pair briefly dipped to the 1.3890 region after the German ZEW Survey missed expectations for the month of March, with Economic Sentiment coming in at 46.6 vs. 53.0 expected and February’s 55.7. The Current Situation component also came in short of estimates at 51.3 vs. 52.0 forecasted. In the same line, EMU’s Economic Sentiment fell to 61.5 vs. 67.3 surveyed and 68.5 previous and January’s trade surplus narrowed to €0.9 billion. “ The German ZEW index dropped in March, reflecting increasing uncertainty from latest events in the Ukraine and Russia… Turning to the facts, no matter how delicate the current political relationship with Russia might be, the short-term impact on the German economy should be limited. Growth in the first quarter should remain unharmed. However, looking beyond the first quarter, latest events and possible upcoming measures will put the German recovery to a serious test”, assessed Analyst Carsten Brzeski at ING Bank NV.
EUR/USD key levels
At the moment the pair is losing 0.14% at 1.3902 with the next support at 1.3879 (low Mar.17) ahead of 1.3873 (10-d MA) and then 1.3848 (low Mar.14). On the flip side, a break above 1.3938 (high Mar.18) would target 1.3948 (high Mar.17) en route to 1.3967 (2014 high Mar.13).