- German government cuts its growth forecast for 2018.
- FTSE 100 falls dragged by mining sector stocks.
German government cuts its growth forecast for 2018.
The German government reduced its forecast for 2018 growth to 2.3% from 2.4%. This growth correction happens after the IFO business confidence index was published, which has fallen for the fifth consecutive month in April. Despite the cut, the Economy minister Peter Altmaier said: “Germany is doing well economically. Actually, we are doing very well”.
The EURUSD moved lower and lost its 1.22 level, looking for the 1.215 to 1.207 levels. We keep in mind the ECB Monetary Policy meeting where we don’t expect changes in the interest rate. In case the Euro rises above 1.224, our current bearish bias in the common currency will change to a bullish bias.
By inverse correlation, the USDCHF pair continues moving bullish, surpassing the maximum registered yesterday. The current situation makes us think that the Swiss currency could build a sideways pattern and be making a corrective move before continuing with its trend. The invalidation level is in 0.95774.
FTSE 100 falls dragged by mining sector stocks.
The FTSE 100 moves bearish in the last trading hour and drops more than 0.70% in the session, dragged mainly by the mining sector stocks, where metals have moved away from their annual highs. The leading British index could extend its falls to the 7,100 level, from where it could resume the upward trend. The invalidation level remains at 6,971.8.
The pound sterling has rejected the level of 1.40 thus forming the pivot level. After the fall recorded in the last trading session, we expect a recession to the area of 1.407 to continue the previous bearish movement with a target between 1.38 to 1.375. Invalidation level is located at 1.4246.