When we look at the general outlook of EUR/USD for the month of April, the decreasing trend affected the parity in the first half of the month. But, with the beginning of the second part of April, we have observed strong recovery signals on the parity. The starting point was at 1.0655 level on the first day of April, and the strong negative trend started. When we come to April 9, the parity decreased to 1.0577, which was the lowest level of the month. After the strong increasing trend with the beginning of second part of the month, the parity tested 1.0750 level. The main reason for the increase was Dollar’s weaken process.
The PMI figures from Europe show that the region's economy has recorded the fastest growth in the last six years. Euro Zone April PMI data was very positive. The manufacturing PMI index surpassed expectations with 56.8, while the service PMI index expects and surpassed the previous month. The composite PMI index was also announced at 56.7 above expectations. On the US side, the health law will come again next week. Trump management's failure to survive could lead to a greater loss of confidence in the markets. In addition, according to the data released today, the production PMI index in the US in April forecast was at 52.8 level. It indicates that expansion in production and service sector is slowing down. After the French presidential elections, Euro gained value against American Dollar by more than 2%.
Finally, when we look at the first forecasts of EUR/USD about the first days of May, we can say there will be a bit negative trend. At the last days of the month, if the horizontal turn of the parliament turns upward, we will be following 1.0755 resistance. If the parity moves in the downward direction, we expect the 1.06 level to support the parity first.
- Date: 30 April 2017 Sun 11:07
- Last Added
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