14, November 2017

The growth of the European currency continues, the pair storms 1.1760 levels

The European currency was trading strongly even before the release of positive data on German GDP, the report just helped the single currency to break through resistance of 1.1665-1.1710, for the first time since the ECB meeting in late October. The German gross domestic product grew with an annual rate of 3.3% compared to 2.6% in the second quarter. Figures have surpassed analysts' expectations. In addition, the official statistical office increased its estimate of GDP growth in the first quarter to an annual rate of 3.6% of the earlier estimate of 2.9%. Growth in the third quarter was due to improved foreign trade amid rising demand for high-quality tools and mechanisms. Italian GDP in the third quarter was also stable at 0.5%, which is the best rates for the last seven years. The rate of 1.8% year-on-year is also the best since 2011.

The British pound is trading at the bottom of yesterday's range and is limited to about a quarter of a percent on both sides of 1.31 dollars. On the other hand, the euro approached the level of GBP0.8955, reaching its best level since October.

The ECB conference, including Draghi, Yellen, Carney and Kuroda, did not cause a big market reaction. Nevertheless, this event is still has a news risk. The North American session will provide data on US manufacturing inflation. Markets will focus more on tomorrow's US consumer inflation data.