This website uses cookies to enhance your experience. By continuing to browse the website, you are agreeing to our use of cookies. Accept Cookies
By Yuriy Maevskiy: Senior Analyst in the Investment Research Department
18 March 2014

According to the report of the Centre for European Economic Research (ZEW), the Eurozone’s index of economic sentiment has plummeted down from 68.5 to 61.5 points in March 2014.


Click on the picture to see full-size

The ZEW indicator of economic sentiment in Germany also shows negative dynamics: it has fallen from 55.5 to 46.6 points.


Click on the picture to see full-size

The weak data by ZEW has led to the correction of the EURUSD – the rate dropped under 1.3900 US Dollars for 1 Euro.

Meanwhile, Russian President Vladimir Putin, signed a treaty making Crimea and Sevastopol part of Russia.

The first reaction of market participants was extremely positive: European indices added ~1%, and EURUSD recovered its losses and got to 1.3940.

The fall of gold has continued and it is currently traded around $1350/troy oz.

However, traders’ optimism cooled down when American investors entered the market. EURUSD is now traded around 1.3900 and has lost ~0.17%.

EURUSD is traded in the narrow corridor between 1.38850 and 1.39400 for a few days now. Technical indicators show that an upwards trend gets weaker.

We suppose that EURUSD will continue decreasing. If the support level at 1.38850 is breached down, then pair can get to 1.38300 and 1.37800.


Click on the picture to see full-size

This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.

Risk Warning: Trading on financial markets carries risks. Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because you may lose all your invested capital. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience. Click here for our full Risk Disclosure.

Risk Warning: Trading in Forex Exchange (Forex) and Contracts for Differences (CFDs) carries a high risk of losing capital.