The EUR/USD edged higher on Wednesday, following a report from the EU institute that said investment was poised to outpace consumption. The currency pair was unable to break through resistance near the 50-day moving average at 1.0625. Support on the currency pair is seen near the 10-day moving average at 1.0531. The exchange rate continues to form a bottom, as momentum remains positive with the MACD (moving average convergence divergence) index prints in the black with an upward sloping trajectory which points to a higher exchange rate.
Eurozone institutes see steady growth of 0.4% quarter over quarter through to Q2. Investment is now expected to outperform consumption and annual rates are expected to be around 1.5% and inflation is expected to jump to 1.5% in Q1 and Q2 from 0.7% in Q4 2016. 1.5% is still below the ECB’s definition of price stability, but still, the marked uptick.
