Topic: COZfx: European Commission maintained its 2014 growth forecast for the
COZforex: For the past trading session, the EUR rise marginally against the USD and closed at 1.3876, ahead of a busy week.
In the Euro-zone, the European Commission maintained its 2014 growth-projection for the economy at 1.2% but lowered its growth estimates for 2015 by 0.1% to 1.7%. Furthermore, the Commission also slashed its forecast on the Euro-zone’s inflation rate to 0.8% and 1.2% for 2014 and 2015, respectively, down from its earlier expectations of 1.0% and 1.3%.
However, the EU Commission Vice-President, Siim Kallas expressed an optimistic outlook on the growth of the Euro-zone economy. In addition, he indicated that the labour market was showing signs of stabilisation despite the high unemployment and, as a result, some improvement can be expected in the next 2 years.
On the economic front, the Euro-zone Sentix investor confidence deteriorated to a 3 months low reading of 12.8 in May, from previous month’s level of 14.1 while producer price index dropped 1.6% in March, less compared to a 1.7% drop in the preceding month.
Meanwhile, in the US, the ISM non-manufacturing PMI rise to a reading of 55.2 in April, its highest reading in 6 months while the Markit service PMI fell less-than-expected to a level of 55.0 last month.
In technical analysis, COZFX strategist Nigel Boynton said, EUR/USD is predicted to find support at 1.3869 and a drop through could take it to the next support line of 1.3859. Meanwhile, the pair is predicted to find its first resistance at 1.3888, and a rise through could take it to the next resistance line of 1.3897.
Amid the later course of the day, traders would eye the Euro-zone’s Markit service, composite PMI and retail sales data, for further cues in the Euro.
(COZ forex UK)