Forex - EUR/USD steady as IMF sees euro zone weakness

Published 04/16/2013, 09:24 PM
Updated 04/16/2013, 09:25 PM
EUR/USD
-
EUR/JPY
-
EUR/AUD
-
Investing.com - The euro is trading slightly higher against the U.S. dollar during Wednesday’s Asian session despite a bleak outlook from the International Monetary Fund regarding the euro zone economy.

In Asian trading Wednesday, EUR/USD rose 0.05% to 1.3184. The pair was likely to find support at 1.3021, the earlier low, and has broken resistance at 1.3162, the high from Feb. 27.

The IMF said said Tuesday the euro zone remains the weakest part of the global economy. IMF added in its World Economic Outlook that a prolonged period of slack growth in the euro zone will diminish the chances for expansion in Central and Eastern Europe.

IMF again said the European Central Bank should lower its benchmark interest to help bolster economic growth while engaging in other stimulus measures and slowing efforts to pare budget deficits.

In euro zone economic news out Tuesday, Germany's ZEW index of economic sentiment index dropped to 36.3 in April from 48.5 in March, falling short of market expectations for a 42.0 reading.

The broader eurozone ZEW economic sentiment index ticked down to 24.9 this month from 33.4 in March, also falling short of market expectations, which were forecasting a 31.5 reading.

Eurostat reported Tuesday that the euro zone's consumer price index remained unchanged at an annualized rate of 1.7% in March, in line with expectations.

Later Wednesday, Germany is to hold an auction of 10-year government bonds while the U.S. will release industry data on mortgage applications as well as official data on oil inventories.

Elsewhere, EUR/JPY jumped 0.61% to 129.34. The pair sought to test support at 125.00. EUR/AUD rose 0.19% to 127.05.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.