Release Time:2018-10-22 02:11
EURUSD (1.1468) • The Eurozone reported a slightly wider current account surplus in Aug (EUR23.9b), from a downwardly revised EUR19.5bn surplus in Jul). Net financial inflows slowed in the month, perhaps reflecting the re-emergence of Italian fiscal tensions over the summer, dampening the broader trend of more positive net portfolio and direct investment inflows into the region. The EU’s criticism of the Italian government’s budget plans has heaped pressure on Italian assets again this week and is clearly adding to pressure on the EUR somewhat in the short run.
EURUSD short-term technicals: neutral – Short-term price action suggests the EUR may have found an interim low, about where it based early last week (1.1430/35) before advancing. Intraday price patterns suggest the EUR slide has stalled at least and minor trend resistance at 1.1471 is under a little pressure as our session picks up. Gains through 1.1470/75 should see the EUR rally towards 1.1525/50.