Yesterday data on the eurozone was positive and the euro rose 50 points. Business Climate Indicator was -0.8 vs. estimates for -0.85. Data on Eurozone Industrial confidence, Consumer Confidence, and Eurozone Economic Confidence was in line with forecasts. However, it was better than previous readings.
Unexpectedly, data on the US was lower than estimates. US GDP in Q1 in the second reading was revised downwardly to 2.4% (-0.1%). US Initial Jobless Claims grew to 354K vs. expectations for 340K. US Pending Home Sales rose 0.3% instead of 1.5%.
The news agencies announced again that the circumstances were favourable for speculative attack at the positions of dollar buyers. As the result the euro grew 105 points.
Today at 10:00 GMT+4 data on German Retail sales in April is due. It is estimated to be 0.3% vs. -0.5% in March. At 13:00 GMT+4 Unemployment rate in the eurozone in April is revealed, forecast 12.2% vs. 12.1% in March.
At 16:30 GMT+4 US Personal spending and income in April. Forecast 0.1%-0.2% (in March it was 0.2%). At 17:45 GMT+4 Chicago Purchasing Managers Index in May, forecast 50.3 vs. 49.0. Consumer Confidence index in May (final estimate) is expected to be 84.1 vs. 83.7.
Thus, there are prerequisites for the growth. On Saturday, PMI Manufacturing in China in May is issued, it is forecast to be 49.9 vs. 50.6. On Monday, the same index is expected to be drop as well, to 50.5 from 50.7.
Technically, the first bullish target is resistance line of trend lines on the daily and H4 charts, 1.3078. If the level is overcome, the high of March 15, 1.3106, may be reached. In this area we expect a bearish tendency to the next strong support at the level of 1.2930 may form.
