EURUSD Outlook for the week

Release Time:2018-05-28 02:19

EURUSD (1.1670) • Germany’s Ifo Business Climate reading for May was steady at 102.2 (after an upward revision to Apr) against expectations of a small drop in the index which adds marginal support to the view that Eurozone growth trend may be stabilizing after the Q1 soft patch. The index had been falling for five months prior to this morning’s release. ECB’s Liikanen remarked that Italian politics will not define ECB policy and that central bank policy needed to be “patient, persistent and prudent”.

EURUSD short-term technicals: neutral – The EUR slide has stabilized but there is precious little sign still that the EUR is poised to pick up much additional ground at this point. Short-term trend signals are neutral and while spot popped higher from earlier lows in the upper 1.16s, the EUR cannot get much traction above 1.1730. We look EUR gains to extend above 1.1750, if the market can improve a little more. However, a break under 1.1675/80 will tip risks back towards 1.1550.