Euro falls after early gains

The euro falls back as the trading session on Wednesday progresses, reversing its increase from the early hours and loosing some of its initial gains. At the time of writing, the single currency was trading at 1.3389, down from its position at 1.3425 earlier today. According to analysts, the fall is triggered by market testing the 1.3400 level. During Wednesday early session, the euro climbed against the dollar for a second consecutive day following report on high German economic sentiment and expectations for improved European consumer confidence due to be released later today.

The ZEW Indicator for Economic sentiment jumped to 48.2 points in February, far exceeding the forecasted figure of 35 and being on the rise for three months in a row.

Germany’s economic confidence showed a significant increase, reaching its highest level in 34 months and signaling for stabilization in the euro zone. Analysts commented that the euro is responding to those signs, but ‘’nothing more’’ as investors’ confidence is still weary about the region’s prospects.

Looking further in the day, the EUR/USD is expected to experience more volatility as the European Commission will release the Consumer confidence report for February. If the reading shows improvement compared to the previous result, as forecasted, this might help the euro offset some of its intraday losses today.


Disclaimer: The Content of these charts and analyses does not constitute any form of advice or recommendation by Delta Financial Markets to buy, sell (or refraining from making) any trade or investment. You may wish to seek independent advice before entering into transactions.

Delta Financial Markets shall not be held liable by you or any others for any decision made or action taken by you or others based upon reliance on or use of information or materials obtained or accessed through use of these technical analyses and charts. DF Markets assumes no responsibility for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person’s reliance upon the information on this page. DF Markets shall not be liable for any special, indirect, incidental, or consequential damages.