HomeContributorsFundamental AnalysisGerman Consumer Morale Zoomed To A 16-Year High In August

German Consumer Morale Zoomed To A 16-Year High In August

For the 24 hours to 23:00 GMT, the EUR declined 0.39% against the USD and closed at 1.1683.

In economic news, Germany’s GfK consumer confidence index unexpectedly climbed to a level of 10.8 in August, escalating to a sixteen-year high level, as strong economic growth in the nation continued to brighten investor sentiment. Market participants had expected the index to remain steady at a level of 10.6.

The greenback gained ground against its key peers, after data indicated that the US preliminary durable goods orders jumped 6.5% in June, accelerating at its fastest pace in nearly 3 years, propelled by robust demand for civilian aircraft. Durable goods orders had registered a revised drop of 0.1% in the prior month, while markets were expecting it to gain 3.9%. Further, the nation’s advance goods trade deficit narrowed more-than-expected to a level of $63.9 billion in June, amid a rise in exports and a decline in imports. Investors had envisaged advance goods trade deficit to narrow to a level of $65.5 billion, following a revised deficit of $66.3 billion in the previous month. Additionally, the nation’s seasonally adjusted flash wholesale inventories rose more-than-anticipated by 0.6% in June, compared to a rise of 0.4% in the prior month.

In other economic news, the number of Americans filing for fresh jobless claims climbed to a level of 244.0K in the week ended 22 July 2017, surpassing market expectations for a rise to a level of 240.0K. In the preceding week, initial jobless claims had recorded a revised reading of 234.0K. Meanwhile, the Chicago Fed national activity index rose less-than-expected to a level of 0.13 in June, after recording a revised reading of -0.30 in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.1691, with the EUR trading 0.07% higher against the USD from yesterday’s close.

The pair is expected to find support at 1.1635, and a fall through could take it to the next support level of 1.1579. The pair is expected to find its first resistance at 1.1762, and a rise through could take it to the next resistance level of 1.1833.

Moving ahead, investors will closely monitor Germany’s flash inflation figures and the Euro-zone’s final consumer confidence data, both for July, slated to release in a few hours. Moreover, the US flash 2Q GDP report and final Michigan consumer confidence data for July, both due to release later today, will grab a lot of market attention.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

GCI Financial
GCI Financialhttp://www.gcitrading.com/
DISCLAIMER : GCI's Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be used as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

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