We were so focused on the UK retail sales today, seeing as Britain is going through strange times and volatility in the GBP pairs has been intense lately, that we forgot about the Eurozone economic data.
The numbers from the Eurozone look great, apart from German services, which missed expectations but still remains at a decent place.
Flash manufacturing and services for the single market as a whole came in above expectations. They show some good momentum in the Eurozone economy, since the numbers are above 56 PMI points.
This is supposed to be positive for the Euro because it is another piece falling into place in this ECB (European Central Bank) puzzle. But, inflation is most important for the ECB right now, so CPI (consumer price index) is what we must watch.
The Italian industrial orders jumped 5.3% higher and the EU current account surplus increased to 38 billion Euros from 26 billion, so more good numbers, but no reaction in EUR/USD.
The EU current account continues to grow
This is bearish in the near term and 1.07 has already been broken, although we´re getting close to a number of moving averages on H1 and H4 forex charts.
So, I´m thinking of opening a short term forex signal down there targeting 20-30 pips, with a stop below those moving averages.