Italian political “hysteria” calmed down a little bit; EURUSD is regaining its positions.
On Wednesday afternoon, EURUSD recovered after its decline in the morning. The current quote for the instrument is 1.1600. The local low is now at 1.1509, which is the lowest level over the last 10 months.
The media frenzy about Italy, where politicians can’t form a coalition, really hurts the Euro harder and harder every day, although one should admit that all risks can be very easily seen even without interference from mass media. A possibility of new elections is quite real. However, if there are new elections indeed, they will be held in early autumn, so there is enough time to make a new trend. In this light, sales of the Euro seem excessive, but not finished yet.
Several reports were published in the afternoon. The Retail Sales in Germany recovered in April and added 2.3% m/m after losing 0.4% m/m the month before. Such quick recovery of the indicator confirms the opinion that in March it was strongly influenced by the weather. The Import Prices expanded by 0.6 m/m in April after adding nothing in the previous month and against the expected reading of +0.7% m/m.
The numbers from France were rather mixed. The preliminary report on the GDP in the first quarter 2018 showed +0.2% q/q against the expected reading of +0.3% q/q. The Consumer Spending in April lost 1.5% m/m against the March and expected readings of +0.2% m/m.
Later in the evening, the USA is scheduled to publish a lot of important numbers. First of all, they will report on the ADP Non-Farm Employment Change in May. The expected reading is 191K, less than in April, but not too much. Secondly, investors will be presented with the preliminary GDP report in the first quarter 2018. And finally, they will publish the Wholesale Inventories along with the Beige Book.
Orgin: RoboForex
