Euro Trades Higher Than U.S. Dollar Despite Disappointing Economic Growth for the Euro Zone

Euro Rallies Over U.S. Dollar Despite Disappointing Economic Growth in Euro Zone
Euro Rallies Over U.S. Dollar Despite Disappointing Economic Growth in Euro Zone

Friday’s trading session saw higher trading patterns of the Euro in comparison to the U.S. Dollar, indicating moderate strength, although official reports suggest that the economic growth outlook is still quite gloomy for the Euro Zone. Following the International Monetary Fund’s World Economic Outlook, the currency was seen to have advanced against the U.S. Dollar, and details showed that the prepared estimate for U.S. GDP growth in this year was computed to 1.7% from an earlier estimate of 2%. The IMF reduced its estimate for global growth to a value of 3.4% from 3.5%. The IMF also elaborated that it anticipates the Euro Zone’s GDP to tighten 0.2% this year, referring to indecision from Italy’s election results previously this year.

In Asian trading Friday, EUR/USD increased 0.06% to a value of 1.3111. The pair was expected to locate support at 1.2969, which was Monday’s low, and find resistance at 1.3162 that was the high from Feb. 27. In addition, EUR/JPY was down 0.05% to a position of 130.53. The pair was seen to have checked support at 129.71 that was the previous low, and resistance at a value of 133.65, the high from Jan. 14, 2010. EUR/AUD is ahead 0.06% at 1.2434 even as EUR/GBP is off 0.01% at 0.8517. The Euro Zone is expected publish official data related to industrial production later today.

A look at the Asian trading market on Friday indicated that the U.S. Dollar had recorded lower trends in comparison to the Japanese Yen, subsequent to the announcement of the tertiary industry index report of Japan for the month of February. Official data that was announced earlier today showed statements presented by Japan’s Ministry of Economy, Trade and Industry that the country’s index of tertiary industries had increased 1.1% in February, ahead of expectations for a rise of 0.7%. The report also detailed those industries that were moving ahead, included wholesale and retail trade, health care, finance, utilities, and communications.

A close look at the trading data showed that USD/JPY slid 0.22% to 99.46. The pair was expected to discover support at a value of 98.90, which was Wednesday’s low and locate resistance at 100.00. NZD/JPY dropped 0.21% to 85.86 and AUD/JPY slid 0.18% to 104.93.