Global macro overview for 10/07/2018
The German ZEW index was weaker than anticipated by the global investors. The outlook assessment disappointed with a worse result: -24.7pts. (versus – 18.9 points expected). The current assessment was also worse (72.4 points versus 78.1 points expected).
There are no major changes on the European market. Investors cannot decide which way to go. CAC40 is still the strongest (0.3 percent). The values of DAX and FTSE100 indexes increase by 0.1%. IBEX35 (-0.3 percent) further in the red.A better mood prevails in the US futures market. A few hours before the start of the session in the US, Dow Jones and Nasdaq are growing 0.2%. S & P500 increases 0.1 percent. Among the main Asian market indices, the best day was Nikkei225 (0.7 percent) and Shanghai Composite Index (0.4 percent). The value of the Hang Seng index remains at the level of Monday’s closing.
The US dollar is gaining relative to major currencies. EUR/USD falls by more than 0.2% to 1.1720. USD/JPY is growing by 0.3% to the level of 111.20.
Let’s now take a look at the EUR/USD technical picture at the H4 time frame. After the ZEW data were released the market dropped towards the technical support at the level of 1.1675 after the local lower high was made at the level of 1.1790. The momentum is weak and points to the south, so is the stochastic indicator, so further slide towards the level of 1.1675 or even 1.1630 is expected.