Euro demonstrates stability against the strengthening of the US dollar
Yesterday, despite the weak data, the European currency managed to recover to the end of trading. As a result, the euro continues to demonstrate stability against the general strengthening of the US dollar.
Yesterday, German factory orders showed a decline by 1.2% vs. the forecast of 0.2 and the previous value of 0.5%. Italian, French and German PMI showed a decline. Eurozone PMI fell to 53.1 vs. 54.0.
In February, retail sales gained 0.2% and the annual assessment increased from 2.0% to 2.4% in the eurozone. However, the increase in the US non-manufacturing PMI, which showed an increase from 53.4 to 54.5 became the main market driver yesterday. The Markit composite index amounted to 51.3 vs. 51.0 previously in the final assessment in March.
The US trade balance decreased a little in February. Investors traditionally expected March and April - traditionally the surplus months (on a budget) due to the completion of the tax period.
Today, German Industrial Production has shown a decline by 0.5% vs. the forecast of 1.8%. The US is to publish the minutes from the last Fed meeting.
How to trade
Level 1.1340 provides support for the pair EUR/USD. We would buy PUT options if the price falls below 1.1340.
Target price: 1.1340
Close price: 1.1399
Expiry time: 20:00 GMT