EUR/USD Finds It Hard To Recovery Despite Turkish Calm, Good Data

The EUR/USD was trading at around 1.1400, paring earlier gains. Turkey remains in the limelight. The government in Ankara is set to introduce an economic plan to stabilize the economy, and President Recep Tayyip Erdo?an pledged his support to open markets.

In addition, the central bank introduced some measures such as liquidity provisions. These have helped soothe investors’ worst fears and sent the Turkish Lira up 5% against the US Dollar at some point. The euro and stock markets enjoyed this improved atmosphere.

However, markets want to see an interest rate hike which Erdo?an vehemently opposes. The recent recovery may turn into a temporary one.

Euro-zone data

German data was genuinely upbeat. The economy grew at a robust pace of 0.5% QoQ in Q2 2018, better than had been expected.

The euro-zone grew by 0.4% QoQ in Q2 according to the latest data, up from 0.3% originally reported. The German data pushed it higher. Year over year, the euro-zone growth is now 2.2% against 2.2% in the initial read.

Germany’s ZEW Economic Index also surprised to the upside with -13.7 in August. The negative figure still reflects pessimism but it is a significant bounce from -24.7 seen in July.

On the other hand, euro-zone Industrial Production dropped by 0.7% in June, worse than had been expected.

The US Dollar remains robust. Without any earth-shattering news, the greenback continues enjoying a potent mix of a booming economy, a hawkish central bank, and trade tensions, and the Turkish crisis, which benefits the dollar against almost all currencies except the ultimate safe-haven, the Japanese yen.

EUR/USD Technical Analysis