European economies are suffering recessionary economic conditions, as confirmed by the flash PMI data released this week. Final PMI data will probably confirm this, in the coming week, while the market focus will turn to European growth and inflation. EU and member states inflation and GDP growth rates are set to be released, this coming week, and this will determine how the ECB will plan monetary policy. If inflation is confirmed as resurgent then rates will remain higher for longer. Alternatively, if GDP growth rates remain dire, the ECB may be encouraged to stimulate the European economy with rate cuts.
Current Level: 1.7758
Resistance: 1.7955
Support: 1.7670
Last Weeks Range: 1.7695 – 1.7930