Euro May Strengthen as GDP Rises and Inflation is Expected to Rise in Euro Area
Euro area inflation is expected to edge higher according to eurostat as a possible result of GDP growth which could strengthen euro. While unemployment rate has maintained low at 7.7%
Euro area annual inflation is expected to be 1.7% in April 2019, up from 1.4% in March according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in April (5.4%, compared with 5.3% in March), followed by services (1.9%, compared with 1.1% in March), food, alcohol & tobacco (1.5%, compared with 1.8% in March) and non-energy industrial goods (0.2%, compared with 0.1% in March).
Growth picked up in the first quarter of 2019, with the first estimate of GDP recording a 0.4% increase. National estimates indicate Spain rose 0.7%; France gained 0.3%; and Italy emerged from recession, up 0.2%. While annual Euro Area economic growth is tracking at 1.2%
Technical Analysis
EURUSD has been trending down since Jan 2019, Last friday the price edged higher following NFP data release. If the price can maintain above 1/2 line we could see some retracement towards 0.618 level of retracement at 1.12735 or 0.382 level at 1.13831.
Euro area inflation is expected to edge higher according to eurostat as a possible result of GDP growth which could strengthen euro. While unemployment rate has maintained low at 7.7%
Euro area annual inflation is expected to be 1.7% in April 2019, up from 1.4% in March according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in April (5.4%, compared with 5.3% in March), followed by services (1.9%, compared with 1.1% in March), food, alcohol & tobacco (1.5%, compared with 1.8% in March) and non-energy industrial goods (0.2%, compared with 0.1% in March).
Growth picked up in the first quarter of 2019, with the first estimate of GDP recording a 0.4% increase. National estimates indicate Spain rose 0.7%; France gained 0.3%; and Italy emerged from recession, up 0.2%. While annual Euro Area economic growth is tracking at 1.2%
Technical Analysis
EURUSD has been trending down since Jan 2019, Last friday the price edged higher following NFP data release. If the price can maintain above 1/2 line we could see some retracement towards 0.618 level of retracement at 1.12735 or 0.382 level at 1.13831.