The Euro has not yet completed the fall
On Friday, February 8, the trend in the decline of the pair EUR/USD, which lasts from January 31, was continued. Bidding the couple began the last day of last week at 1.1340 for. During the day the pair climbed to of 1.1350, but the bears took over, and by the close of trading, the quotations fell to 1,1320. The Euro was declined due to the good fundamental news from the region.
Trade balance of Germany in December rose to +19.4 billion euros compared with +18.9 billion euros in November, while it was expected a decline to 18.4 billion This occurred against the background of faster growth of exports (+1.5% m/m) compared to imports (+1.2% m/m). Good dynamics showed industrial output in France: +0.8% m/m instead of the expected +0.6 PCT, after a decline of 1.5% m/m in November. But failed to meet expectations in January, the industrial production in Italy: -0,8% m/m and -5.5% of yoy, consensus +0,4% m/m and is 3.0%. it Seems that Italy is the stone that drags down the Euro and the European economy down.
Monday morning, 11 February, EUR/USD was trading sideways, showing moderate tendency to decrease. Today the US will publish preliminary data on the unit cost of the workforce in the fourth quarter and will be placed 3 – and 6-month bills. EUR/USD has very little potential to reduce up to 1,1305, which corresponds to the lower boundary of the rising channel, which is visible on D1, and then likely rebound in the area of 1.1350.
Senior analyst at information-analytical center,