Valeria Bednarik, chief analyst at FXStreet explained that trading was for the most choppy across the forex board this Tuesday, with the EUR/USD pair ending the day pretty much flat, a few pips below the 1.1000 figure.
Key Quotes:
“Risk aversion, triggered by China at the beginning of the day, was the main market mover, as exports fell by 20.6% in Yuan terms and compared to a year before, while imports contracted 8.0% in February, resulting in a 210.0B surplus against the 329.0B expected and the 406.2 previous.
In Europe, news were for once positive, as Germany offered some robust manufacturing data, up by 3.3% monthly basis last January, while the EU GDP in the last quarter of 2015, grew by 0.3%, in line with market’s expectations.
Concerns over what the ECB may deliver next Thursday is also helping keep the EUR subdued, as speculation mounts on Mario Draghi delivering more than a 10-15bp deposit rate cut.
The broad dollar’s weakness keeps the EUR/USD pair near its 2-week high, but from a technical point of view, the bullish potential has decreased due to the lack of follow through.”
(Market News Provided by FXstreet)
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