A busy day for euro-zone data. There are no surprises in the euro-zone GDP: it is confirmed at 0.3% q/q and 1.6% y/y. This comes after German GDP missed expectations while Italy posted better than expected growth.
Germany’s ZEW Think-tank reported a rise in economic sentiment in the zone’s largest economy: a jump from 6.2 to 13.8 points, better than 8.1 predicted. The Current Conditions component missed with a slide from 59.5 to 58.8 points, below the 61.5 predicted. So, this is not perfect, but the headline figure trumps the rest.
The euro-zone’s trade balance surprised with a wider than expected surplus at 26.5 billion euros. The currency area’s export machine keeps the euro bid.
EUR/USD is trading around 1.08. The pair recovered from the dollar storm, bouncing nicely off support ant reached resistance at 1.0820, from where it was rejected as well. This is perfect range trading. Can this last? EUR/USD could reach parity in early 2017.
Here is how the recent bounce looks on the one-hour chart.
more coming
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