Date : 18th November 2014
EURUSD PUSHED ABOVE THE 1.2500 LEVEL AFTER BETTER THAN EXPECTED ZEW ECONOMIC SENTIMENT REPORTS.
EURUSD dropped yesterday and closed at 1.2448. During his speech yesterday, the President of the European Central Bank Mario Draghi reinforced the commitment of the central bank for using additional unconventional measures to stimulate the growth in the Euro area if needed. The ECB Executive Board Member Yves Mersch cautioned about the possible negative effects of sovereign bond purchases which according to Draghi remain as an option.
Data released from the United States showed that the Industrial Production in the largest economy in the world unexpectedly dropped 0.1 percent on a monthly basis in October. Another report indicated that the Empire States Manufacturing Index rose less than expected to a reading of 10.6 in November, but recorded a sharp gain from the previous month’s reading of 6.17.
The German ZEW Economic Sentiment data released today indicated a sharp rise to 11.5 in November. Market had expected a reading of 0.9. The ZEW Economic Sentiment in the Eurozone followed the positive tone coming at a reading of 11.0 in November against the market expectations of 4.3.
Data released from the United States showed that the Producer Price Index in the US rose more than expected in October recording a gain of 0.2 percent.
Support for the EURUSD is seen at 1.2445 and resistance is seen at 1.2568.
Disclaimer: 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 purchase or sale of any financial instrument.