The euro/dollar is trying to stabilize
22.05.2014
The main currency pair still remains under scrutiny of the "bears" and the instrument can’t manage to move above the figure of 1.37.
The euro/dollar continues its attempts to stabilize, which, however, are still ineffective. The macroeconomic calendar today, for example, gives a good chance to rebound from the local winter bottom. But the buyers, frightened by the previous bearish pressure, do not seem to want to take that chance.
Today’s statistics showed that the index of business activity in the services sector in the euro zone in May rose to 53.5 points against the forecasted 53.0 points, and the manufacturing sector fell to 52.5 points while the predicted figure was 53.2 points.
In Germany, the data on the service sector showed growth of the indicator to 56.4 points (the forecast was 54.8 points), the index of industrial production amounted to 52.9 points - the expectation was 54 points.
French reports were minor, even in this ambiguous background. The index of business activity in the non-manufacturing sector in May fell to 49.2 points (the forecast was 50.3 pts), in the manufacturing – it fell to 49.3 points (the forecast was 51.1 pts.)
Here we immediately see what scares the buyers of the euro/dollar: if the seasonality factor suggests the rise in the services segment, and this is confirmed by the figures, the manufacturing sector will remain in the state of a temporary blackout.
RoboForex Analytical Department
The euro/dollar continues its attempts to stabilize, which, however, are still ineffective. The macroeconomic calendar today, for example, gives a good chance to rebound from the local winter bottom. But the buyers, frightened by the previous bearish pressure, do not seem to want to take that chance.
Today’s statistics showed that the index of business activity in the services sector in the euro zone in May rose to 53.5 points against the forecasted 53.0 points, and the manufacturing sector fell to 52.5 points while the predicted figure was 53.2 points.
In Germany, the data on the service sector showed growth of the indicator to 56.4 points (the forecast was 54.8 points), the index of industrial production amounted to 52.9 points - the expectation was 54 points.
French reports were minor, even in this ambiguous background. The index of business activity in the non-manufacturing sector in May fell to 49.2 points (the forecast was 50.3 pts), in the manufacturing – it fell to 49.3 points (the forecast was 51.1 pts.)
Here we immediately see what scares the buyers of the euro/dollar: if the seasonality factor suggests the rise in the services segment, and this is confirmed by the figures, the manufacturing sector will remain in the state of a temporary blackout.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.