EURUSD dropped on Friday and closed at 1.2507, as poor economic data from Germany and Italy added to Eurozone recession concerns. The single European currency took a hit, after Italian industrial production fell far more than expected by 1.9 percent m/m in April, against the market expectation of 0.5 percent drop and German trade surplus narrowed to 14.4 billion Euro in April, from 17.4 billion Euro surplus in March. The German Central Bank revised its forecast for German GDP to 1.0 percent in 2012, from its previous forecast in December for a growth rate of 0.6 percent. For 2013, growth is seen at 1.6 percent, down from the prior projection of 1.8 percent. In the Asian session the pair reached 1.2667 after Eurozone Finance Ministers, over the weekend, decided to lend Spain up to 100 billion Euro to help the nation to recapitalize its banks. Support for the EURUSD is seen at 1.2546 and resistance is seen at 1.2653. The Inside View indicator on HotForex shows that 57 percent of the traders are short on the EURUSD.
The pair fell on Friday and closed at 1.5469. The output producer price inflation in the United Kingdom eased to 2.8 percent y/y in May, from a revised rate of 3.2 percent in April. Bank of England in its survey report raised consumers’ expectations for inflation to 3.7 percent over the next 12 months, up from an expected 3.5 percent in February, highest since November. Following the risk appetite in the pair reached levels around 1.5572. Support for the GBPUSD is seen at 1.5456 and resistance is seen at 1.5577. The Inside View indicator on HotForex shows that 60 percent of the traders are long on the GBPUSD.
Aussie rose against the US dollar on Friday and the pair closed at 0.9927. Over the weekend, in China, consumer price index rose 3.0 percent y/y in May, while retail sale in the nation rose 13.8 percent y/y in May. The industrial production rose slower than expected by 9.6 percent y/y in May, against the market expectation of 9.8 percent. For the week ahead the economic calendar is light on releases from Australia. The only high impact release will be the speech of the governor of the Reserve Bank of Australia Stevens. Support for the AUDUSD is seen at 0.9888 and resistance is seen at 0.9998. The Inside View indicator on HotForex shows that 71 percent of the traders are short on the AUDUSD.