COZFX: Euro-zone’s trade surplus expanded more-than-estimated in May
COZFOREX: For the past trading session, the EUR declined 0.45% against the USD and closed at 1.1211.
On the macro front, Euro-zone’s seasonally adjusted trade surplus widened to €20.2 billion in May, surpassing market expectations for a surplus of €17.8 billion. The nation had posted a revised surplus of €15.7 billion in the prior month. Meanwhile, the region’s economic sentiment index fell to a level of -20.3 in July, following a level of -20.2 in the previous month.
Separately, in Germany, the ZEW economic sentiment index dropped to an 8-month low level of -24.5 in July, compared to a revised reading of -21.1 in the previous month. Market participants had envisaged the index to fall to a level of -22.0. Moreover, the nation’s current situation index declined to a level of -1.1 in July, more than market consensus for a drop to a level of 5.0. In the prior month, the index had recorded a level of 7.8.
The US dollar gained ground against its peers, amid upbeat US retail sales data.
In the US, data showed that advance retail sales rose 0.4% on a monthly basis in June, compared to a revised similar rise in the prior month. Markets had anticipated advance retail sales to record a gain of 0.1%. Also, the nation’s manufacturing production climbed 0.4% on a monthly basis in June, rising for the second consecutive month and higher than market expectations for a rise of 0.3%. In the prior month, manufacturing production had recorded an advance of 0.2%.
Additionally, the NAHB housing market index unexpectedly jumped to a level of 65.0 in July, defying market expectations for a steady reading. In the preceding month, the index had recorded a level of 64.0. Meanwhile, the US industrial production remained flat on a monthly basis in June, compared to an advance of 0.4% in the previous month. Market participants had anticipated the industrial production to register a rise of 0.1%.
In technical analysis, COZFX strategist Nigel Boynton said: EUR/USD is expected to find support at 1.1188 and a fall through could take it to the next support level of 1.1165; Meanwhile, the pair is expected to find its first resistance at 1.1249, and a rise through could take it to the next resistance level of 1.1287.
(COZ forex UK)