EUR/USD Surged With a Robust Growth in Euro-areaBy: Eddy Peng Nov 15, 2017
Chart 1: EU Consumer SpendingThe result of ZEW (European Economic Research) survey for economic sentiment, which assesses future economic expectations for the whole euro-zone, has set to be 30.9, beating the previous figure of 26.7. It is revealing that market has a stronger optimism to the future economic growth. Economists from Credit Suisse Group and Oxford Economics Institute held the optimistic view towards euro-zone economy, which has been greatly benefited from the golden age, which has a higher pace of expansion with a relatively lower inflation rate. The outlook for the tax reform in the U.S. poses some uncertainties into the market, since the House and the Senate couldn’t reach a consensus concerning the timing difference of its implement. This results some losses in both stock market and currency value. In the event that the tax overhaul couldn’t pass on the Congress in the near future, market drops would be inevitable. Technically, the EUR/USD is consolidating in a descending price channel beginning with the late August. However, its recent rise appears to get downward trend reversed and hit the upper level of the price channel. In the event of it breaks out successfully, traders should watch for next resistance for the pair at Sept. 8’s high of 1.20912.
Chart 2: EURUSD Daily