Topic: COZfx: Euro trading tad lower ahead of the Fed monetary policy decisio
COZforex: For the past trading session, EUR marginally rise against the USD and closed at 1.3929.
The EUR initially lost ground after the economic sentiment data from the Euro-zone and Germany disappointed investors, fuelling concerns over the economic outlook of the region. The Centre for European Economic Research reported that the ZEW survey – economic sentiment index in Germany dropped to a seven-month low level of 46.6 in March and failed to match expectations of a 52.0 reading, compared to a level of 55.7 reported in the prior month.
Additionally, the economic sentiment index in the Euro-zone too reported a decline to a level of 61.5 in March, missing market expectation of a level of 67.3 and compared to a reading of 68.5 reported in the previous month. Further, adding to the negative sentiment, Euro-zone trade surplus narrowed to €0.9 billion in January, from a revised surplus of €13.8 billion recorded in the previous month.
The US Dollar found some support after data revealed that the number of building permits issued in the US rise more than expected to a four month high to a seasonally adjusted 1018K in February, surpassing January’s figure of 945K. However, gains were checked after the US housing starts dropped for a third consecutive month at a 0.2% annualized rate to 0.907 million last month, following a revised 0.909 million pace in the previous month. Separately, official data indicated that the consumer prices in the US rose 0.1% in February, in line with analysts’ projections and matching January’s advance.
In technical analysis, COZFX strategist Nigel Boynton said, EUR/USD is predicted to find support at 1.3887 and a drop through could take it to the next support line of 1.3850. Meanwhile, the pair is predicted to find its first resistance at 1.3952, and a rise through could take it to the next resistance line of 1.3980.
Later today, all eyes would be on the release of the latest Federal Reserve policy meeting and interest rate decision, wherein investors would be keen to know whether the Fed would announce a further tapering of its quantitative easing programme.
(COZ forex UK)