EUR/USD (current price: 1.1465)
Friday’s releases painted a negative picture of the U.S. economy with the Chicago PMI, UOM Consumer Sentiment, and U.S. Personal Spending all coming in worse than expected. European data was mixed as German Retail Sales and the Eurozone CPI disappointed, but Spanish and French GDP growth, came in better than expected. The difference led to a rally in the pair, and it hit its highest value since October this morning. EUR/USD is testing the 1.1475-1.15 resistance, but Draghi’s speech means that it won’t stay above that level today.
Our assessment: The short-term advancing trend is still intact, with the pair rallying five sessions in a row, but this afternoon might bring a correction as investors will likely focus on the Mr. Draghi’s message.
