FX News - April 15 2014: Mixed ZEW Survey Drags Down EUR

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The EUR/USD pair took a nosedive under the 1.3800 area today after the release of the mixed ZEW Survey. The survey revealed that the Economic Sentiment in April in Europe was at 61.2, which was higher than the expected 60.7. Meanwhile, the same indicator came out lower at 43.2 in Germany where 45.0 was expected. On a positive note, Germany’s Current Situation in April was at 59.5, where only 51.8 was expected.

The mixed results of the survey led to a lower EUR/USD pair at the opening of the European session today, which sent it to today’s low at 1.3793. It has made a slight recovery so far and is trading at 1.3805, with initial resistance seen at 1.3842, followed by 1.3877. Meanwhile, initial support is at 1.3785, followed by 1.3751.

The EUR/GBP pair was also affected by the result of the survey, as well as the positive series of data that came out of the United Kingdom earlier. The UK’s CPI in March came out as expected at 1.6% for the 12-month period, and at 0.2% compared to the previous month, while its Core CPI was up by 1.6% for the past 12 months. There were also surprises in the DCLG House Price Index, which went up by 9.1% in March, compared to the 7.2% jump expected. Its PPI Core Output for the same period was at 1.0%, which was slightly higher than the expected 0.9%.

The mix of these reports sent the EUR/GBP pair seesawing for a good two hours, peaking at 0.8283, before bottoming out at 0.8248. It is currently trading at 0.8255, with initial resistance seen at 0.8273, followed by 0.8294. Meanwhile, initial support is at 0.8240, followed by 0.8219.

By FX Strategy Team, Published on 15th of April 2014
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