US data outweighs Eurozone for EUR/USD

The EUR/USD is being driven by important US data, not Eurozone activity, said analysts at ING.

Analyst Francesco Pesole explained, "Eurozone developments are being dwarfed by the US calendar events, and EUR/USD is set to be driven by the USD leg for longer. Today, we’ll see the second release of the eurozone’s 1Q GDP, which came in at 0.3% quarter-on-quarter in the advance print, and industrial production figures for March. The European Commission is also set to release new economic forecasts this morning, which could see the more upbeat tone on the region’s growth cemented after more improvement in the ZEW survey indicators yesterday. Although not immediately visible, potential government support for the real estate sector in China bodes well for the eurozone’s export machine. On the European Central Bank side, we’ll hear from Olli Rehn, Madis Muller, Francois Villeroy and Gabriel Makhlouf today."

"EUR/USD has broken above the 100-day 1.0823 MA average and – should it receive more help from US data - would be facing the next technical resistance at the 1.0885 April highs and 1.0900 psychological level."

You May Also Be Interested In