EUR/USD breaches 50DMA to the upside, large option expiries in focus



© Reuters.

By Samuel Indyk

Investing.com – breached its 50DMA to the upside at 1.2157 following stronger than expected data. The monthly survey from the German economic research institute showed investor morale above forecasts on expectations that consumption will improve in the month’s ahead. The economic sentiment index showed a rise to 71.2 points from 61.8 previously.

“The financial market experts are optimistic about the future,” ZEW President Achim Wambach said. “They are confident that the German economy will be back on the growth track within the next six months.”

Option Expiries

After breaching the 50DMA in the wake of the data, EUR/USD has continued to push higher towards 1.2200 where there is large sized option expiry interest. Approximately €1.5bln of option expiries are due to roll off today at the level at the 10am NY cut (1500GMT). Furthermore, there’s €639mln at the 1.2150 level. Both could attempt to exert magnetism heading towards the latter part of the European session.

EZ growth not as bad as feared

Further supporting the EUR today is better than expected Eurozone growth data. Fourth quarter fell by 0.6% QoQ, rather than earlier estimate of 0.7%. Growth is likely to get worse in the first quarter with the Eurozone likely suffering a double-dip recession, however, there is optimism that the vaccine rollout and shrinking case numbers could see economies begin to open up sooner rather than later.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

READ  British PM tells ministers an EU deal is far from certain

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here