Yesterday ZEW Economic Sentiment indices both for Germany and Euro Area were better than expected. It was 48.2 against for expected 35.3 in Germany and 42.4 against forecast for 35.3 in euro zone. After sharp movement the situation did not change considerably; either investors have immunity from strong data on Economic Sentiment indices, or there are no conditions for confidence. Uncertainty was created due to rumors about dispute in Federal Open Market Committee (FOMC) about the date QE3 program is completed. Though, it was said the program would not stop running until December 2013. Minutes of FOMC meeting will be published at 23:00 GMT+4.
This morning data on Merchandise trade balance in Japan in January was published. Export rose 6.4% (the first growth for 8 months), impost grew 7.3% annually, the deficit widened to $17.4 bln (JPY 1,629.4 bln) due to decrease in industrial production output amid nuclear power station was stopped. Nevertheless, speculative optimism on the markets may be supported.
At 17:30 GMT+4 US Core PPI in January is issued. It is expected to be 0.2% against 0.1% in December. Building Permits in January is forecast to rise from 910K to 920K annually. Housing starts is expected to drop from 950K to 930K.
From the technical point of view there is uncertainty in the range 1.3390 to 1.3435. However, the first signs of the trend will turn to the target level of 1.3540; Marlin oscillator is in positive zone on the H4, the price is higher the indicator lines on the daily chart and H4l. If the price extends the resistance 1.3435, 1.3493 may be reached, then 1.3519. If the rate reverses under 1.3390, target 1.3347 opens with an attempt to reach 1.3305, the low of February 15.