Early in another April week, EURUSD is a little bit retreating; investors are waiting for new catalysts.
The major currency pair is falling a bit on Monday afternoon. The current quote for the instrument is 1.1887.
Earlier, Germany reported on its Industrial Production for February. The indicator dropped by 1.6% m/m after losing 2.0% m/m the month before and against the expected reading of +1.6% m/m. Investors are frightened by weak reports from Germany because it might lead t much more serious problems in the key European economy. Germany has always been an economic engine of the Euro Area and it’s rather unclear who may replace it.
Last Friday, the USA reported on the Core PPI, which added 0.7% m/m in March after expanding by 0.2% m/m in the previous month and against the same expected reading. The Wholesale Inventories added 0.6% m/m against the expected reading of +0.5% m/m.
The USD is somehow supported by the US bond yield growth. The Euro, in its turn, is looking weaker because market players can’t be sure about the European economy and its ability to quickly recover after the coronavirus pandemic. Lockdowns are still in effect in some European countries and it’s not too optimistic.
Later today, the Euro Area is scheduled to report on the Retail Sales for February and it might be interesting: the indicator is expected to show +1.3% m/m after being -5.9% m/m in January. The stronger the reading, the better for the Euro. Also, the USA will publish the Federal Budget Balance but it won’t have any influence on the market volatility. At the same time, Fed Chair Powell is going to speak and this is what may attract market players’ 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.