The euro showed an overall bullish movement this past week where it managed to gain modestly against the U.S dollar, as the economic indicators from the largest economy of Europe – Germany – released much better than expected outcomes on its trade balance, industrial production, and factory orders. Meanwhile, the services sector of Italy and Spain also showed a slight improvement in June against the recorded figures in May.
The Eur/Usd closed at the 1.3339 level on Friday where it would remain bullish as long as it does not move and sustain below the critical level of 1.3287.
After the bullish run in the last week of July, the pair gave its 130 points bearish correction within an hour or so on Wednesday amidst the speech of BoE Governor Mr. Carney. But right after that the bulls continued to take the pair up in the air as the construction and as well as the services sector showed substantial improvement against its previously recorded figures. Services sector contributes massively towards the GDP of the U.K economy, plus the manufacturing production also increased that reflects some warm and positive movement in the economy.
Starting the first week of trading in August, the pair started with the 1.5100 area and after gaining more than 400 points, it tested the 1.5573 area after which it closed at 1.5506 level on Friday. Prospects for buyers would remain strong as long as the pair trades above the critical support level of 1.5400.
After experiencing a terribly bearish two months – June and July – the pair rose back up again this first week of August where the bulls launched it from the 0.8850 support level and closed it at the 0.9195 level on Friday after gaining 315 points the whole week.
A number of fundamental factors were there that allowed this to happen as the Home Loans in the Australian economy improved considerably, showing positive momentum in the lending/borrowing and spending activities. Moreover, the housing prices also increased as the demand increased this summer for new homes and more importantly the unemployment rate of the Australian economy remained at 5.7% rate against the expected figure of 5.8%.
Later on Thursday, the Chinese imports and exports figures impressed the investors in the commodity market and commodity currencies, which led to a price hike in gold, silver, and as well as Aud/Usd. The pair is bullish as of now and would remain safe to buy as long as it hovers above 0.9028.
To contact the reporter of this story: Jonathan Millet at email@example.com