Forex: EUR/USD – Return to yesterday’s high at 1.3108 ahead of Eurozone PMI

on Jun 5, 2013

After some positive US updates Tuesday afternoon, the pair rose to three-week highs at 1.3108. Since then, the quote has crawled up and down from the high within a narrow range.

The US Bureau of Economic Analysis published US trade balance data in yesterday’s early American session. The deficit widened by 8.5 percent in April to $40.3 billion from $37.8 billion in March, but came in below estimates for a deficit of $41 billion.
The Commerce Department said US imports rose 2.4 percent in April to $227.7 billion, while exports increased 1.2 percent to $187.4 billion.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

It was followed by the Redbook Research Inc. report, showing the Redbook Index of US general merchandise retailers remained at 0.6 percent growth in May m/m and rose to 2.9 percent y/y against 2.7 percent in April’s reading.
Also released yesterday, ISM’s New York Index, an estimate of business conditions amongst manufacturers and non-manufacturing enterprises in the New York region, showed a decrease to 54.4 points in May from 58.3 in April.

In a speech given yesterday, Federal Reserve Bank of Kansas City President Esther George said she supports easing asset purchases due to the improving U.S. economy. This was a small hint at changing attitudes, though it is expected that the Fed will not halt its QE program in the immediate future.
Today, ahead of the new Eurozone Markit Services PMI update due at 09:00 BST, the pair hit the 1.3108 level again. However, the European session started with quoting at 1.3070/75.
This will be followed by Eurozone GDP Q1 and April’s Retail Sales update at 10:00 BST.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more