Yesterday EURUSD continued its down move and closed at 1.2829 as the final talks about forming a new government and avert another election ended without any progress. Fears that the country is on its path to bankruptcy and an exit from the Eurozone still exist. Industrial Production m/m in the Eurozone dropped with 0.3 percent against the market forecast of a 0.4 percent rise. Adding to the negative sentiment Moody’s Investors Service has warned that Spanish banks would remain vulnerable to rising loan delinquencies and cut the credit rating of 26 Italian banks. In bond auction Spain sold 2.9 billion Euro in short term debt. Italy raised 5.25 billion Euro with its three year benchmark at an average 3.91 percent yield. Today we have series of economic data from the Eurozone due on the calendar. Investors will be focused on the German ZEW Economic Sentiment. Support for the EURUSD is seen at 1.2819 and resistance is seen at 1.2902. The Inside View indicator on HotForex shows that 63 percent of the traders are long on the EURUSD.
The Cable rose yesterday closing at 1.6100. The pair remains steady ahead of the UK Trade Balance data due to be released today. Support for the GBPUSD is seen at 1.6058 and resistance is seen at 1.6122. The Inside View indicator on HotForex shows that 51 percent of the traders are short on the GBPUSD.
Yesterday the pair continued its down move and closed at 0.9970. Earlier today the Reserve Bank of Australia in minutes of its May 1 policy meeting, stated that lower than expected inflation, weak economic growth and domestic home loan rate hikes formed the case for a bigger than expected 50 basis point cut in interest rates at the start of the month. Support for the AUDUSD is seen at 0.9954 and resistance is seen at 1.0035. The Inside View indicator on HotForex shows that 55 percent of the traders are short on the AUDUSD.
Important releases and events
EUR: French Prelim GDP q/q; German Prelim GDP q/q; French Prelim Non-Farm Payrolls q/q; Italian Prelim GDP q/q; German ZEW Economic Sentiment; Flash GDP q/q; ZEW Economic Sentiment; ECOFIN Meetings
GBP: Trade Balance
USD: Core CPI m/m; Core Retail Sales m/m; Retail Sales m/m; CPI m/m; Empire State Manufacturing Index; TIC Long-Term Purchases; Business Inventories m/m