Yesterday PMI Services in the Euro area grew from 48.3 to 48.6 in January. Retail Sales in the eurozone in December dropped from -0.1% to -0.8%, forecast was for -0.5%. Amid weak data on February Sentix Investor Confidence in the eurozone (it is important to note, as positive data on business climate and economic sentiment are for December and January and US Factory orders growth in December, which were worse than expectations issued on Monday, the euro continued downward movement. Later that day the US ISM index in January was released, it dropped from 55.7 to 55.2 (the data on December was revised downwardly, from 56.1 to 55.7). Following the stock market the euro added 68 points.
Today at 15:00 GMT+4 German factory orders in December is published. It is expected to be 0.8% against -1.8% in November. There is no relevant information on US. Tomorrow China’s Trade balance in January is issued; it is forecast $24.3 bln against $31.6 bln in December. Amid it, it is possible that investors will be influenced by the information and today they will act guided by negative data as both in the Euro Area and in the USA Composite output index dropped. Probably the same holds true to China. US Treasury plans to attract $331 bln by means of bonds, which may be compared to QE2, as we have already mentioned the dollar during the periods of mass attraction strengthens.
From the technical point of view, descending movement to 1.3540, 1.3500, and 1.3455, supports on the H4, is expected.