Euro Stopped declining as ECB President Spoke in Frankfurt
By: Eddy Peng Apr 5, 2017
Chart 1: EURUSD Daily
Euro-area unemployment fell to the lowest level in almost eight years in February, in a sign that the region’s economy is strengthening. Joblessness has been decreasing steadily to 9.5 percent from a peak of more than 12 percent in 2013 as the European Central Bank deployed unprecedented stimulus to rekindle growth and fuel inflation. Euro-area factory growth accelerated in March, climbing to the highest level since 2011, as an improving global economy boosted export demand in the region’s biggest economies. ECB President Mario Draghi, who has repeatedly urged governments to implement reforms to reduce structural unemployment and boost growth potential, said the recent decline shows the success of the central bank’s 2.28 trillion-euro ($2.4 trillion) stimulus plan. The second French election campaign debate, lasting four hours, will be held today. This TV election debate includes three main topics, which are about how to create more job opportunity, how to protect and enhance security of France and how to achieve the expected social model that makes France better. The Elabe conducted a public opinion poll which showed that the Socialist Party candidate Jean-Luc Melenchon temporarily ranks first, while the right-wing presidential candidate Marine Le Pen lost some supporters, ranking the fourth (11%). However, the potential Frexit has been threatening the Euro-area economy and its prospects. The Euro-zone retail sales of February released yesterday was set to be 1.8 percent, beating the forecast of 1.0 percent. An increasing number of sales signals consumer confidence and economic growth, fuelling a further rally of Euro. According to the daily chart of US Index showed at MT4, there is a resistance range MA60 found above the current position, giving hurdles along the road to momentum maintenance. If it fails to break out, traders may look for short position in U.S. dollar.
Chart 2: US Index Daily
