The single currency, the euro, rose during the Asian session to witness its highest level since March 30 against the US dollar on the threshold of economic developments and data expected on Friday by the euro area and the US economy, which includes the participation of Federal Reserve Governor Jerome Powell in a hypothetical discussion in the Center for Griswold Studies Economic policy at Princeton University in New Jersey and US President Donald Trump's press conference on China in Washington.
At 05:52 am GMT, the euro pair rose against the US dollar by 0.28% to 1.1108 levels, compared to the opening levels at 1.1077 after the pair achieved its highest level in two months at 1.1111, while achieving the lowest during the trading session at 1.1070.
The markets are looking to the largest euro zone economies, Germany, to reveal the retail sales index reading, which may reflect the widening decline to 12.0% compared to 5.6% last March, as the annual reading of the same indicator may show the widening decline to 14.3% against 2.8%, and that In conjunction with the release of the import price index also for Germany, the decline could widen to 1.5% from 3.5% in March.
This comes before we witnessed by France, the second largest economy in the region, the disclosure of the final reading of the GDP index, which may confirm a contraction of 5.8%, little changed from the previous initial reading of the last quarter, compared to a contraction of 0.1% in the fourth quarter, in conjunction with the release of France's consumer spending reading may reflect a contraction of the decline to 14.5% compared to 17.9% last April.
This also comes in conjunction with the disclosure of the initial reading of the consumer price index for France, which may reflect 0.1% growth against stability at zero levels in April, before we witness the economies of the euro area as a whole. The annual reading of the private loan index, which may explain the acceleration of growth to 3.5% vs. 3.4%, and the release of the annual M3 Money Supply Review, which may show accelerated growth to 8.1% from 7.5% in March.
This comes before we witness from Italy, the third largest economy in the euro area, the issuance of the initial reading of the consumer price index, which may show a contraction of 0.1% compared to 0.1% growth in April, and in conjunction with the release of the initial annual reading of the same index for the economies of the region as a whole, which may reflect the slowdown in growth to 0.1% vs. 0.3% in February, as the preliminary annual core reading of the index might show, the slowdown in growth to 0.8% versus 0.9%.
Disclosure of inflation data for the euro area as a whole with the release of the initial reading of the GDP index, which may reflect a contraction of 3.7% versus 0.1% growth in the fourth quarter, and the annual reading of the consumer price index showed a slowdown in growth to 0.1% against 0.7% in March, as may The substantial annual reading of the same indicator shows that growth slowed to 0.7% versus 1.0%.
On the other hand, investors are currently awaiting by the US economy, the largest economy in the world, to disclose spending and personal income data, which may reflect the expansion of personal spending to 12.6% compared to 7.5% in March, and the decline in personal income to 7.0% compared to 2.0% in March, as the reading of the core personal consumption expenditures price index may explain the decline to 0.3% compared to 0.1% in March.
This comes in conjunction with the release of the merchandise trade balance index, which may explain the widening of the deficit to $ 64.8 billion compared to $ 64.2 billion in March, in conjunction with the release of the initial reading of the wholesale inventory index, which may reflect a decline in the decline to 0.5% compared to 0.8% In March, before the Chicago PMI reading was revealed, it may reflect a contraction of 40.1 versus 35.4 in April.
Up to the disclosure of the final reading of the University of Michigan's index of consumer confidence, which may show the stability of the expansion at a value of 73.7, little changed from what it was in the preliminary reading of the previous month and against 71.8 in April, and this comes before the expected speech of the Federal Reserve Governor Jerome Powell and the US President Donald Trump's press conference on China
The euro against the dollar succeeded in confirming the breach of the 1.1067 level after closing the daily candle above it, confirming the continuation of the bullish trend for the coming period, and the price needs to overcome the resistance of the bullish channel that appears in the image to open the way towards heading towards our next positive station which is located at 1.1170.
SMA 50 supports the suggested bullish wave, noting that breaking 1.1067 and holding below it will put the price under intraday negative pressure aiming to test 1.0966 areas initially before any new attempt to rise.
The expected trading range for today is between 1.1000 support and 1.1170 resistance.
Expected trend for today: bullish.