Eurozone Q1 GDP was revised up to 0.6% q/q from 0.5% q/q reported initially, and Q4 last year was also revised higher to 0.4% q/q from 0.3% q/q. This means the trajectory is better than initially thought, which backs the ECB view that the recovery remains on track, even if Q1 data have to be taken with a pinch of salt and are likely to be followed by a relatively weak number for Q2.

The breakdown showed that private consumption growth accelerated strongly to 0.6% q/q from 0.3% in Q4 and was the biggest single contributor to the strong quarterly growth rate, which may partly be due to the Easter Effect. Fixed gross investment growth slowed, but still contributed 0.2% points, and government consumption a further 0.1% points, while net exports detracted 0.1% points. Again strong numbers, that will back the ECB’s wait and see stance, even if confidence indicators point to a slowdown ahead.

EURUSD has been reacting favorably to the numbers while the fact that Fed Chair Yellen didn’t put any specific date on the rate hike pressures the USD. Price has been moving higher from a support at 1.1360 and is now at minor resistance at 1.1380. The next significant resistance lies at 1.1445 while some minor resistance exits at 1.1404 – 1.1415.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

EURUSD, Daily       

U.S. ISM non manufacturing index dropped 2.8 points to 52.9 in May after rising 1.2 points to 55.7 in April. This is the lowest since February 2014. The index was 55.9 a year ago. The business activity index fell to 55.1 from 58.8. The employment component plunged to 49.7 from 53.0, matching the lowest since February 2014. New orders fell to 54.2 from 59.9. New export orders tumbled to 49.0 from 56.5. Prices paid was one of the few components posting a gain, rising to 55.6 from 53.4. Another disappointing report.

The dollar extended lower following the factory orders and services ISM results, where the former missed slightly and the latter missed significantly. EURUSD has rallied to 1.1348, matching the May 17 peak, as USDJPY fell to 106.77, levels last seen on May 6.

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

EURUSD, Daily       

Bundesbank cuts growth and inflation forecast, sees balanced risks. After the ECB published its updated set of staff projections yesterday, the Bundesbank released its projections for Germany, which were taking into account in the ECB calculations. The working day adjusted forecast for GDP was cut to 1.6% this year from 1.7% previously and the projection for 2017 was cut to 1.6% from 1.9%. 2018 growth is seen at 1.7%. At the same time, the inflation projections were cut to 0.2% this year and 1.5% next year from 1.1% and 2.0% previously. Sharp downward revisions with the Bundesbank blaming oil price variations and seeing balanced risks, but with inflation seen at just 1.7% in 2018, this means headline rates will remain below the 2% upper limit for price stability for a lengthy period.

Eurozone services PMI revised up to 53.3 from 53.1 and the composite revised up to 53.1 from 52.9. This means the services reading improved slightly over the month, and the composite now shows an acceleration on the overall pace of activity, compared to a slight deceleration suggested by the initial numbers. National data was mixed, and especially the fact that the Italian services PMI fell back into contraction territory at just 49.8 and the overall composite Italian PMI is barely holding above the boom-bust line at 50.8 is worrying. Bund futures recovered earlier losses on the weak Italian numbers and as the French readings were revised down, but are off highs as German and Eurozone numbers were revised higher. Uncertainty remains high but the mixed data will add to the disappointment over the ECB’s failure to announce new measures.

All quite on the forex front as markets hunker down ahead of the U.S. employment report showstopper, to which the possibility, or not, of a Fed rate hike on June 15 hinges. The G3 currencies are on the day so far showing less than a net 0.15% net change against one another. EURUSD has been locked in the mid 1.11s and USDJPY has taken root around 109.00, having recovered from the 18-day low at 108.49 that was seen during the Tokyo session.

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.