EURUSD Moved Above 1.1000, Eyes a Test of 1.1040

Key Highlights

• UK Nationwide Housing Prices highlighting the value of the houses prices in UK and indicate current movements in the housing market posted an increase of 1% in April, compared to the preceding month.

• UK Nationwide Housing Prices, in terms of the yearly change gained by 5.2% in April 2015.

• Switzerland Consumption Indicator, which is a leading indicator of private consumption trends, which is the most important component of Swiss GDP published by UBS increase to 1.35.

• Spanish Retail Sales released by the National Institute of Statistics registered an increase of 2.8% in March 2015, compared to the same month a year ago.

• Italian Consumer Confidence released by the National Institute of Statistics registered a rise from the last revised reading of 103.7 to 104.1 in April 2015.

• Euro Zone Consumer Confidence, which is a leading index that measures the level of consumer confidence in economic activity released by the European Commission remained at -4.6.

• Euro Zone Business Climate Indicator was also released, which posted an increase from the last reading of 0.23 to 0.32 in April 2015, compared to the forecast of 0.21.

• Euro Zone Industrial Confidence i.e. an index that measures the level of industrial executives’ confidence was on the negative side and declined to -3.2 in April 2015.

Euro Zone Consumer Confidence

Earlier during the London session, the Euro Zone Consumer Confidence i.e. a leading index that measures the level of consumer confidence in economic activity was released by the European Commission. The market was not expecting any change in the reading from -4.6 in April 2015. The outcome was as expected, as the Euro Zone Consumer Confidence remained flat at -4.6.

Furthermore, the Euro Zone Business Climate Indicator was published, which was forecasted to decline from the last reading of 0.23 to 0.21 in April 2015. However, the outcome was way above the mark, as the Euro Zone Business Climate Indicator increased to 0.32.

The Euro Zone Industrial Confidence, which is an index that measures the level of industrial executives’ confidence was on the lower side. It posted a decline from the last reading of -2.9 to -3.2 in April 2015.

Italian Consumer Confidence

The Italian Consumer Confidence, which represents a survey of the consumer opinions in Italy was released by the National Institute of Statistics. The forecast was of a decline from 110.9 to 110.5 in April 2015. However, the outcome was lower compared to the expectation, as it posted a reading of 108.2. Moreover, the last reading was revised down to 107.7, which was again on the disappointing side. On the other hand, the Italian Business Confidence increased from 103.7 to 104.1 in April 2015.

Technical Outlook – EURUSD

The Euro climbed higher and traded above the 1.1000 resistance area against the US dollar. Let us see if the EURUSD pair can managed to hold the ground in the near term or not. On the upside, the next level of interest can be seen around the 1.1040.  

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