FOREX NEWS: ALL EYES ON THE GERMAN BUSINESS CLIMATE, THE WEEK�S FINAL MARKET MOVER
EUR/USDForex News: Both the French and German Manufacturing PMIs showed disappointing values yesterday, lower than forecast and previous figures, generating a bearish day. The US data didn�t surprise in any way and was mostly overlooked by the market.
Technical OutlookAlthough the day was almost entirely controlled by the bears, the support located at 1.3650 was not clearly broken and this means there is still chance of a bullish rally today. A break of the mentioned level would solidify the bears� dominance and would probably take the pair into 1.3560 support but such a move might be too much for a single day. To the north, resistance is located at 1.3700.
Fundamental OutlookThe first event of the day is the release of the German Ifo Business climate, a survey with a large sample (7,000 businesses), focused on expectations for the next six months and also on the current business conditions. The time of the release is 8:00 am GMT and the expected figure is 111.0, a small decrease from the previous 111.2. The impact varies depending on the numbers posted but usually a higher value strengthens the Euro. Later in the day, at 2:00 pm GMT the US New Home Sales numbers are released and expected to increase substantially from last month�s 384K to 426K. More homes sold suggest a thriving economy and thus, can have a positive effect on the US Dollar.
GBP/USDUnited Kingdom�s Gross Domestic Product matched analysts� expectations and remained unchanged at 0.8%, a fact which was perceived as bearish for the Pound, taking the pair below 1.6880.
Technical OutlookYesterday price touched for the second time the resistance located at 1.6920 and immediately bounced lower, below 1.6880. This shows that bears have underlying power and that 1.6820 might be the pair�s next target. However, we must keep in mind the fact that form a long term perspective, the pair is in an uptrend, so a touch of the mentioned support will most likely trigger a move higher.
Fundamental OutlookThe United Kingdom didn�t schedule any major news releases today so price action will be mainly affected by the US events and by the technical aspect.
