By IFCMarkets
Preparing for publication of important statistics in EU and USA
The downward movement means the weakening of the euro against the US dollar. The EU’s external trade balance surplus in April was only €1.2 billion (excluding seasonal fluctuations of € 2.9 billion). It showed a powerful drop compared to € 25.5 billion in March. Recall that the Eurozone GDP decline in the 1st quarter of 2020 amounted to 3.1% in annual terms. The forecast for the 2nd quarter may be even more negative given this minimum trade balance data. Earlier, industrial production in the EU fell by 28% annually in April. On June 16, significant data will be released in Germany: May inflation and the ZEW business activity index. The forecasts are very positive. If they do not come true, then the euro may weaken. Retail sales for May, an important economic indicator, will be published in the US. The outlook is also positive, but this time for the US dollar. Moreover, Fed Head Jerome Powell is expected to speak.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Sell | |
| MACD | Neutral | |
| MA(200) | Neutral | |
| Fractals | Neutral | |
| Parabolic SAR | Sell | |
| Bollinger Bands | Neutral |
| Order | Sell |
| Buy stop | Below 1,12 |
| Stop loss | Above 1,144 |
Market Analysis provided by IFCMarkets