Forex ­EUR/USD reduces its losses after the German almtshlki price index report

Forex ­EUR/USD reduces its losses after the German almtshlki price index report

The euro pared its losses against the u.s. dollar Monday, after data showed that German consumer prices rose in line with expectations this month despite previous reports from the eurozone along with Greek debt concerns continued to pressure sentiment. 

The EUR/USD traded away from 1.0892, the lowest price for the pair since 28 May to the European dealings 1.0941 Thursday afternoon, still down by 0.43%. It is likely to find support at 1.0817 pair, the lowest level since May 27 and resistance at 1.1011, the highest level since May 25. Preliminary data showed that the German consumer price index rose by 0.1% in may, in line with expectations after reading the previous month. On an annual basis, consumer prices rose by 0.7%, as expected. 

And purchasing managers index hit 52.2 unchanged for the final reading for the month of March, the highest level in 10 months, but down slightly from the initial estimate of 52.3. Still weak in key economies in the region continues, the decline of the manufacturing sector in France and Germany recorded modest growth. And fears of possible shortages after Athens warned last month that it would not be able to repay, if no agreement was reached on the cash transaction versus economic reforms with international creditors by then. 

The Greece to pay 305 million euros to the International Monetary Fund on 5 June. And disregard the dollar statements on Friday showed the us economy shrank in the first quarter, with recent indicators continued recovery in growth by raising interest rates prospects. 

The Commerce Department reported that u.s. gross domestic product shrank at an annual rate of 0.7% in the first three months of the year, instead of the initial estimate of 0.2% growth. In the United Kingdom report that showed manufacturing managers ‘ index lmarkit rose to 52.0 from 51.8% average reduction in April, but was less than the forecast 52.5.

 The data added to expectations that the Bank of England will leave interest rates unchanged for a longer period. Sterling remained under selling pressure amid renewed concerns of a possible departure of Britain from the European Union. 

The Government of Prime Minister David Cameron in a Bill in Parliament on Thursday to hold a referendum on membership of the United Kingdom in the European Union by the end of 2017.  

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Forex­ EUR/USD reduces its losses after the German almtshlki price index report