Euro Above 1.1200 And Looks Set For More Gains

Key Highlights

• Euro continued to gain momentum against the US dollar as the latter one weakened recently, which means there is more room for gains in the EURUSD pair.

• German Unemployment Change published by the German Statistics Office posted a reading of -8K in April 2015, compared to the market expectation of -13K.

• German Unemployment Rate remained stable at 6.4% just as the market expected.

• Spanish Gross Domestic Product, which is a measure of the total value of all goods and services produced by Spain released by the National Institute of Statistics increased by 0.9% in Q1.

• In terms of the yearly change, the Spanish GDP increased by 2.6%, more than the forecast.

• German Retail Sales released by the Statistisches Bundesamt Deutschland registered a decrease of 2.3% in April 2015, compared to the forecast of a 0.4% increase.

• In terms of the yearly change, the German Retail Sales increased by 3.5% in April 2015.

• Swiss KOF Swiss Leading Indicator decreased from the last revised reading of 90.9 to 89.5.

German Retail Sales

Earlier today during the London session there were many economic releases lined up in the Euro Zone. The first in the line was the German Retail Sales, which was released by the Statistisches Bundesamt Deutschland. The market was expecting it to increase by 0.4% in April 2015, compared to the preceding month. However, the outcome was way below the forecast, as the German Retail Sales posted a decline of 2.3%.

Considering the year-over-year change, the German Retail Sales registered a rise of around 3.5% in March 2015, compared to the same month a year ago. This was above the forecast of a 3.2% increase.

German Employment Report

There was one more critical event in the Germany, as the Unemployment Change report and the Unemployment Rate data were released by the German Statistics Office. The Unemployment Change, which helps in measuring the absolute change in the number of unemployed people in Germany came in at -8K in April 2015, compared to the preceding month. The result was on the lower side, compared to the forecast of -13K. The German Unemployment Rate managed to stay at 6.4%, which can be considered as a positive sign in the short term.

Spanish GDP

In Spain, the Gross Domestic Product i.e. a measure of the total value of all goods and services produced was released by the National Institute of Statistics. The Spanish GDP posted a rise of 0.9% in Q1 2015, compared to the preceding quarter. In terms of the yearly change, the Spanish GDP gained by 2.6%, which was above the forecast of 2.5%.

Technical Outlook – EURUSD

The Euro continued to surge higher and broke the 1.1200 resistance area to trade close to the 1.1250 level. The pair is currently correcting lower and testing the 1.1160 support area where buyers are protecting the downside. There is a chance of one more run towards the 1.1200 in the short term as long as buyers are in control.

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