EURUSD Opening For the Week Shows Presence of Increase In Buying ActivityThere are some signs of a recovery in the euro
EURUSD opened for the day above last week’s close and has been maintaining a range bound pattern across Asian market hours. However this range bound momentum has been in a price range of 1.195 to 1.197 well above last week’s close indicating increase in buying activity. Mario Draghi, President of the European Central Bank just delivered a speech in Florence where he made one of his most statements so far. While the speech didn’t reveal anything new related to possible rate hike in near future, Draghi backed France President Emmanuel Macron’s call to complete the Euro zone banking union.
Euro on Slight Recovery
While various European member nations are of divided opinion on same, this open statement issued by ECB President is considered hawkish as Draghi has been a person who was always prudent on whenever fiscal capacity of Euro zone area is concerned. While Euro zone banking and fiscal union is not expected to be complete before leaders meeting scheduled to be held in June at Brussels, any positive progress in related matter is expected to boost EURO’s value to new heights as completion of banking and fiscal union is expected to and believed to increase stability of EURO in global markets.
European Calendar was light last Friday as market closed for the week and US macro economic data saw mixed outcome. US Import and export data was bearish while Michigan consumer sentiment and expectations was bullish. Both US and European calendar remains light on Monday except for speech from various members of ECB’s executive board and speech from FOMC Member Bullard in US. The pair is expected to see continued bullish increase in price in EURO’s favor during today’s trading session. The exchange rate is expected to reach as high as 1.20 during European and American trading sessions later today. Going forward many analysts believe that a hawkish Euro zone inflation data scheduled to release later this week could result in EURO making a bullish breakout. Expected support and resistance for the pair are at 1.1915 / 1.1880 and 1.1980 / 1.2000 respectively.