Sterling And Euro Look Set To End The Week At Key Resistance Against The Dollar

0
101
Markets Down On Crimea Secession Vote

Sterling And Euro Look Set To End The Week At Key Resistance Against The Dollar

 

The EURUSD climbed steeply on Friday to fresh yearly highs on a combination of better than expected fundamental data from the Eurozone and generally worse than expected data from the U.S. The pair currently sits just shy of key resistance around 1.3800, a level that dates back to October last year.

The first major release came in the form of German retail sales (MoM). The release doubled expectations, logging a 2.5% gain versus an expected figure of 1.2%. Shortly after, Eurostat revealed the Eurozone CPI flash estimate (YoY), which again bettered expectations at 0.8%, a 0.1% gain on a forecast of 0.7%. European data rounded off with an as expected unemployment rate of 12.0%, unchanged from the previous release.

The bullish EURUSD bias was compounded early in the afternoon session, with the prelim GDP (QoQ) release out of the U.S. The reported figure was 2.4%, falling short of the forecast at 2.6% and down on the previous release of 3.2%.

The Greenback found a small amount of reprieve mid afternoon with a better than expected Chicago PMI figure, reported as 59.8 against the forecast 57.9, but it was not to last. Fifteen minutes after the PMI release, the National Association of Realtors reported pending new home sales (MoM) at 0.1%, falling way short of the estimated 2.9%.

The EURUSD currently stands at a 0.6% gain for the day, with the aforementioned resistance looking as if it might dictate the weekly close.

**relatedarticle**

Elsewhere, an as expected Nationwide HPI release of 0.6% from the UK, again in combination with the disappointing U.S. data, has boosted the GBPUSD to weekly highs around 1.6740. As with the EURUSD, the rise has driven price to a key resistance level, this time just shy of 1.6800. With no further data set for release, and in a similar fashion to its European counterpart, the value of the Sterling will likely close out the week against the Dollar around this level.

To contact the reporter of this story: Samuel Rae at samuel@forexminute.com