Solid News

Business Activity in the EU Manufacturing Sector is Declining Again

3/27/2023 12:03 PM

After an active decline on Friday, the EUR/USD pair is trading around the level of 1.0766.

The pressure on quotes was exerted by poor macroeconomic statistics: German March Manufacturing PMI corrected to 44.4 points from 46.3 points, worse than analysts' forecasts of growth to 47.0 points, which led to negative dynamics of the EU index to 47.1 points from 48.5 points earlier against expectations of strengthening to 49.0 points. Today, the focus of European investors will be the February statistics on the dynamics of consumer lending in the EU, where forecasts suggest a correction of the value from 3.6% to 3.4% YoY. Also during the day, will be released a report on business optimism and economic expectations in Germany from the Institute for Economic Research (IFO) for March, where the figure may be adjusted from 91.1 points to 90.9 points.

The American currency slightly improved its position, being traded today at 102.700 in the USD Index. After the interest rate at the last meeting of the US Federal Reserve was increased by 0.25%, representatives of regional banks began to speak out about the impact of the tightening policy on the financial sector, which is currently experiencing serious difficulties. Thus, the head of the Federal Reserve Bank (FRB) of Minneapolis, Neil Kashkari, warned that further tightening is doubly dangerous, as it accelerates the onset of a recession and increases pressure on credit institutions, whose failures could contribute to a significant economic downturn. Nevertheless, the official stressed that the US financial system is reliable and, with timely measures by the authorities, should withstand the challenges.

On the daily chart, the trading instrument continues its corrective movement within the global ascending corridor with dynamic boundaries 1.0570–1.1200.

Technical indicators keep the signal for continued growth: fast EMAs on the Alligator indicator expand the range of fluctuations upwards, and the AO histogram forms upward bars, rising in the buying zone.

Resistance levels: 1.0860, 1.1030. | Support levels: 1.0710, 1.0520.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Disclaimer 1: Solid ECN Securities LLC and it affiliates does not accept clients from Turkey, United States, and Europe.
Disclaimer 2: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Copyright All Right Reserved 2023