EUR/USD Overlooks Current Account Data As Geopolitical Concerns Loom

Talking Point:

• Eurozone ECB Current Account SA (May) (Euros): 19.5B Actual Vs 21.6B Prior (Revised Higher).
• Eurozone Current Account NSA (May (Euros): 8.9B Actual Vs 18.8B Prior (Revised Higher).
• EUR/USD Overlooks Current Account Figures As Geopolitical Anxiety Overshadows.

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The Euro area Current Account surplus, seasonally adjusted, grew to €19.5B in May, European Central Bank data showed today. The data that summarizes the flow of goods, services, income and transfer payments in and out of the Eurozone nations to other countries, slowed from €21.6B in April. On an unadjusted basis, the Eurozone Current Account surplus totaled €8.9B versus €18.8B in the prior month.

Ahead of the data, the Euro gained against the Greenback to trade as high as 1.3532. But after the release, EUR/USD remained uneventful. This limited reaction may be due to traders being more focused on the global headlines that increased volatility earlier in the session. DailyFX Currency Strategist Ilya Spivak says “volatility may be on tap all the same however as geopolitical jitters rattle financial markets”.

From a technical standpoint, Ilya Spivak mentions near-term support rests at 1.3502-12 (28.2% Fib Exp.) and resistance at 1.3583-607 (23.6% Fib, trend line). He is currently short EUR/USD at 1.3644 in line with his long-term fundamental outlook.

EUR/USD 5 Minute Chart

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Edward Hyon, DailyFX Research Team

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