Forex: EUR/USD – EU data updates send mixed signals

on May 30, 2013
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The pair had been trading in the 1.2965/70 range before climbing a bit to a 1.2985 high but this had been a short upside move which the pair retraced in the first part of today’s European session.

The euro has been supported in the short term by the stronger-than-expected data released yesterday by Bundesbank, which indicated a drop in German inflation to 1.5 % in May.
Yesterday’s statement by Boston Fed President Eric Rosengren that it would be ‘premature’ for Fed to end bond purchases has also been weighing on the dollar.
A set of economic data just released by the European Commission shows that economic sentiment indicator for May has risen to 89.4 from 88.6 in April, which indicates business climate improvement to -0.76 versus -1.04 for the same period.

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Consumer confidence fell in May to 21.9 points from April’s 22.3. Industrial confidence index declined to 13 points in May from 13.8 in April. Service sentiment has improved in May, measuring -9.3 points against -11.1 points in April.
The updated data gave mixed signals for the further movements of the pair. After the release the pair broke above the 1.30 level, before retracing to 1.2989.
Upcoming US data could be the next factor to change the price.
Annualized US GDP in Q1 and jobless claims data is due to be updated at 13:30 BST, followed by pending home sales at 15:00 BST.

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