Key Economic Data - Coming Up Today (All Times GMT+2)
Markets are fluctuating less than the norm ahead of the critical Eurogroup meeting to iron out Greece's fate within or outside of the Eurozone’s common currency union. The EURUSD fell from the 1.1450 level on Friday to 1.1310 following the strong US jobs data and the downgrade of Greece's credit rating. Over the weekend there was plenty of sabre rattling from both sides with Germany insisting there is no other option than for Greece to stay on the path agreed by previous Governments, while the Greek PM and the Finance Minister have stated clearly that the new government will not compromise on any of its pre-election promises and will not agree to any deal that amounts to more of the same. Yesterday Varoufakis raised the stakes by claiming that a Greek exit will lead to the dissolution of the union akin to the collapse of a house of cards. The Greek FM warned that Italy could follow next as well as Portugal and other struggling EU economies. At the same time German Chancellor Angela Merkel met with US President Barak Obama at the White House to discuss Ukraine and the Greek problem. The US has been leaning on Germany to be more accommodative towards Greece and build a funding program that will assist Greece in growing out of its present economic malaise. At present Germany has given no hint of changing its stance in negotiations with Greece and in the general approach to dealing with weak economies within the EU. The EURUSD has traded between 1.1270-1.1359 so far this week as the range has been restricted to 89 pips. The pair is currently trading at 1.1330. Gold has fought back from last week's low of $1228 to post a high of $1243 an ounce early this week. Crude Oil has maintained positive momentum at the start of this week with prices reaching as high as $53.98 a barrel following a 20% gain last week.
Yesterday the German Trade Balance grew from 17.9B to 21.8B beating expectations of an 18.2B trade surplus. The German export machine benefits from a weaker Euro currency and this has helped Germany weather the economic slowdown in Europe. In addition European Sentix Investor Confidence advanced sharply from 0.9 to 12.4. Overnight in Asia Chinese CPI data slumped to the lowest level in five years, while PPI sunk to the lowest level since Nov 2009. Less than an hour ago the Swiss Unemployment Rate data was released showing that the rate stayed at 3.1% despite forecasts of a weakening to 3.2% while French Industrial Production figures impressed growing 1.5% in excess of economist expectations of a rate of 0.3% growth.
EURUSD Support areas include 1.14 1.1325, 1.1250, 1.1200, 1.1150 1.1100, 1.1050, 1.10, 1.0950. Resistance levels above are at 1.15, 1.16, 1.1650, 1.1700, 1.1800, 1.1975, 1.2000, 1.2200, 1.2300, 1.2380, 1.2402.
EURUSD 10 Minute Chart
EURUSD 4 Hour Chart
Crude Oil 10 Minute Chart
EURUSD Pivot Point Table