Germany has recently announced its upbeat economic data for the recent quarter, boosting the Euro for the time being. The recent reports presented a clear indication of a step-up as the biggest economy of the Eurozone.
The impact of the said reports sent the euro to $1.1695 level against the dollar which is a 0.24% generally. This was a recovery from Monday’s $1.1662 which was considered a low prior to the release of the Germany’s gross domestic product figures.
The economic productivity of the country added at a chronological excerpt of 0.8% in the third quarter of 2017 which has totally beat the estimated data of just 0.6%. Such result was believed to be a clear indication of the strength of Germany. This can support the case for the European Central Bank to instigate the tightening monetary policy in the coming year of 2018.
Germany as the Eurozone's biggest economy aided on the surge of Euro.
“…the underlying broadening recovery story will focus greater attention on the ECB’s super-loose policy,” Strategist Chris Turner told reports.
Chief Eurozone economist Claus Vistesen further stated that” these data tell a story of a German economy firing on all cylinders, not least because the first quarter data were revised up.”
The robust German figures show promise for the second reading on Eurozone GDP that is due to be released soon.
As mentioned above, the German economic data has indeed played a major role in the performance of the Euro/USD Trades. The recent bull domination indicated above has added to the current trend of the pair. With such optimism, it is likely that the pair would continue its apparent performance with a trade potentially closing at 1.17526 with no low tails so far.
The Relative Strength Index of the pair continued its uptrend as well with a performance at the 60’s region, specifically at 55.12. Since the pair hasn’t showed any indication of declines, the index may continue trading in the said region and may potentially reach the 70’s region soon.
As for the Coppock Curve of the pair, the indicator also continued its apparent trend. It is currently at -1.61, showing struggles on moving beyond the negative region. Since it is a negative region, a hold on sell would be advised if to consider the uptrends indicated above.
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