FX News - May 13 2014: Euro Tumbles on Poor ZEW Data

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The euro tumbled in today’s trading as the ZEW Surveys for Germany and the European Union came out poorly. Germany’s economic sentiment in May fell to a whopping 33.1 versus the 41.0 expected and the previous 43.2. The EU had the same story, as the economic sentiment in the region fell to 55.2 versus the 63.5 expected and the previous 61.2. Germany’s current situation, however, was slightly better at 62.1 versus the 60.5 expected, and the previous 59.5. Aside from these data, there were also reports from the media that the German Bundesbank could be willing to support stimulus measures from the European Central Bank, which led to an even weaker euro.

The EUR/USD pair dropped sharply during the European session after it opened today’s trading above the 1.3750 area. It bottomed out today so far at 1.3700, and is currently trading at 1.3707, with initial resistance seen at 1.3780, followed by 1.3815. Meanwhile, initial support is at 1.3752, followed by 1.3718.

The story was pretty much the same with the EUR/JPY, wherein the pair peaked at 140.95 after the European session opened, but immediately dropped in value after that. It has bottomed out at 140.13, which practically erased much of the pair’s gains since yesterday. It is currently trading at 140.24 with initial resistance seen at 140.88, followed by 141.23. Meanwhile, initial support is at 140.27, followed by 139.92.

Then there’s the EUR/GBP, which also faltered in the European session after initially peaking near the 0.8175 area. It eventually bottomed out just below the 0.8140 zone, and is currently trading at 0.8141. Initial resistance for the pair is at 0.8162, followed by 0.8183. Meanwhile, initial support is at 0.8135, followed by 0.8115.

By FX Strategy Team, Published on 13th of May 2014
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