Euro Targets Fresh Highs versus the US Dollar

May 1, 2015

Talking Points

  • Euro managed to trade above the 1.1000 resistance area, but failed to hold the ground.
  • German Consumer Price Index released recently posted a decline of 0.1% in April 2015, compared to the preceding month.
  • UK CBI Distributive Trades Survey released by the Confederation of British Industry posted a decline from 18 to 12 in April.

Key Highlights:

German Consumer Price Index

UK CBI Distributive Trades Survey

 

German CPI

Recently, there were several important releases lined up in the Euro Zone, including the German Consumer Price Index. The German CPI helps in evaluating price movements by the comparison between the retail prices of goods and services.

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The forecast was lined up of 0.1% decrease in April 2015, compared to March 2015. The report stated that the German CPI is expected to decrease by 0.1%, fulfilling the market expectation. In terms of the year-over-year change, the German CPI managed to increase by 0.4%, which was higher compared to the previous rise of 0.3%.

Guest Post By – Tom Daly, Academy of Financial Trading

EURUSD Technical Analysis

The Euro surged higher during the past couple of sessions versus the US dollar, and traded a few pips above the 1.1000 level. There was a reaction noted around the mentioned area, and as a result, the pair corrected lower.

There was a bearish trend line formed on the hourly chart of the EURUSD pair, which was breached by buyers recently. It is now acting as a barrier for sellers and providing support to the pair. There is a chance of one more dip towards the highlighted trend line, which can be considered as a buying zone.

UK CBI Distributive Trades Survey

The UK CBI Distributive Trades Survey, which is a main indicator of short-term trends in the UK retail was published by the Confederation of British Industry. The market was expecting a rise in retail sales volumes with a rise from 18 to 25 in the CBI Distributive Trades Survey in April 2015. However, the result was disappointing as it fell to 12.

The report stated that retailers expected sales growth to improve next month. The CBI DTS Chairman and Asda’s Chief Customer Officer, Barry Williams, mentioned that “With the mixed news we’ve been seeing from the high street recently it’s perhaps not surprising that retailers have reported varied fortunes this month”.

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Post Submitted By – Tom Daly, Academy of Financial Trading

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11 years ago