The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
The EUR/USD currency cross is trading at $1.3723, down 0.1% following Mr Visco’s remarks which have offset the strong economic sentiment created by Germany’s Ifo report. The survey from manufacturers, wholesalers and retailers saw a February reading of 111.3, a two-and-a-half year high. The euro was trading higher versus the US dollar on the back of the report, but Mr Visco’s comments ensured the gains were short-lived. As interest rates in the eurozone are at an all-time low of 0.25%, the central bank has less to work with if it wants to stimulate growth.
The focus of the week will be the inflation and unemployment reports due from the eurozone on Friday. If inflation continues to decrease, and if unemployment were to increase, we could see the euro decline.
As Brenda Kelly stated, the 50-hour moving average is currently providing support, and $1.3680 is the next support level down.