Evening Euro Target: 1.1260

Evening Euro Target: 1.1260

20 May 2016, 15:28
Roberto Jacobs
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Evening Euro Target: 1.1260

For the past twenty six hours the difference between pairs heading the same way has reduced. The euro/dollar is up 48 points: from 1.1179 to 1.1227. The pound/dollar is down 113 points: from 1.4663 to 1.4550. The spread between the pairs has reduced due to a revival of the euro/pound cross. European stats have nudged the euro up.

In the UK, industrial orders in May were down 8 points against a 13 point forecasted fall and a previous 11 point fall. The surplus on current Eurozone operations has risen to 27.3 billion euros against a forecasted 19.6 billion euros and a previous 19.2 billion euros. Without taking seasonal fluctuations into account, the surplus increased to 32.3 billion against 11.2 billion euros in February.

The evening will see Chinese and US data out. Canadian CPI and US secondary market housing sales could cause short-lasting fluctuations on the market before the weekend.

We can see that the euro/dollar needs to rise to 1.1250-1.1260 and the pound/dollar needs to fall to 1.4490-1.4508. In this case the pairs will be balanced at these levels. On Monday the rates will stand still at the levels reached and on Tuesday the dollar could continue its rally against all currencies.


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