The Euro is trying to start a new growth. Overview for 28.02.2019

EURUSD completed the correction; it is now ready for a new growth.

The major currency pair is trading upwards on Thursday after finishing the correction the day before. The current quote for the instrument is 1.1382. 

Market players will have a great deal of information to process today, as the economic calendar is full of reports and numbers. In the morning, Germany reported on the Import Prices, which lost 0.2% m/m in January (worse than expected). The price pressure in Germany is getting more and more complicated and it’s bad for the Euro. 

France published the preliminary GDP report, which showed 0.3% q/q in the fourth quarter 2018, the same as before. However, the reading was no surprise for the Euro. In addition to that, France reported on the Inflation Rate in February, which didn’t change at all, although it was expected to be +0.4% m/m. for the Euro, these readings were neutral.

In the evening, the USA are scheduled to publish the weekly Unemployment Claims report. The indicator has been stable for a long time, that’s’ why it won’t force any serious fluctuations on the currency market. 

Today’s key highlight is the preliminary GDP report in the fourth quarter 2018 to be published by the USA. The country’s economy is believed to lose momentum as the indicator is expected to be only 2.2% q/q after being 3.4% q/q the quarter before. However, one shouldn’t make any far-reaching conclusions: the GDP report is usually revised three times and every time the number gets better. So, one should pay attention to the components of the report. In the short-term, the USD may respond, because the weaker the reading the worse for the American currency, but it won’t be critical at all. 

Apart from this, there will be several minor reports from the Euro Area and Spain. Another interesting thing is the speech by FOMC member Richard Clarida.