The euro continued to be in demand in the morning before the release of an important report on inflation in the United States. The demand was associated with data on German exports, which revived in March this year, which will support the economy in the 1st quarter of this year. Given the growth of exports in conditions of aggravation of world trade contradictions, we can safely say that the German economy will continue to maintain its leading position in the EU.
According to the German Federal Bureau of Statistics, the export of goods from Germany in March 2019 increased by 1.5% compared with the previous month. Import growth was 0.4%. As a result, Germany's foreign trade surplus amounted to 20.0 billion euros, while economists expected it to reach 18.1 billion euros.
Data on industrial production in France did not affect the market, since the decline was predicted by economists.
According to the report, industrial production in France in March 2019 decreased by 0.9% compared with February, while a decline of 0.5% was predicted. In February, industrial production was revised to 0.1% from 0.4%. The main decline was due to a fall in manufacturing. However, as noted by a number of experts, despite the decline in March, in general, in the first quarter of 2019, the growth of industrial production in France was quite decent.
As for the technical picture of the EURUSD pair, it remained unchanged. The main task of buyers of risky assets remains the protection level of 1.1215, which will keep the upward trend and will lead to an update of the highs in the area of 1.1290 and 1.1340. The return of the euro under the level of 1.1215 can quickly return to the market of large sellers, putting on a further continuation of the downward trend with the update of the minimums of 1.1130 and 1.1080.
The British pound ignored the data on the slowdown in economic growth in March of this year. According to a report by the National Bureau of Statistics, UK GDP fell by 0.1% compared with February, while economists had expected GDP to remain unchanged.
Compared to the 4th quarter of 2018, in the 1st quarter of this year, the UK economy showed an increase of 0.5%, which fully coincided with economists' forecasts. On an annualized basis, GDP growth in the first quarter was 2% against a growth of 0.9% in the last quarter of last year.
The growth was mainly due to the fact that the companies were able to prepare for the scenario of the uncontrolled Brexit at the beginning of this year, which made it possible to show the best results. Good growth in industrial production is proof of that.
According to the report, industrial production in the UK in March 2019 rose immediately by 0.7% compared with February and by 1.3% compared with the same period in 2018. Economists had forecast growth of 0.4% and 0.8%, respectively.
A good contribution to the overall figure was made by manufacturing in the manufacturing industry, which in the UK increased by 0.9% in March and by 2.6% compared to the same period in 2018. Manufacturing production in the UK was forecasted at 0.5% and 1.6%, respectively.
As for the technical picture of the GBPUSD pair, buyers need to form a reversal of the current downward correction that has been observed all this week. It will be possible to do this only after the return and consolidation above the resistance of 1.3030, which will make it possible to get to the larger levels of 1.3030 and 1.3230 next week. If the big bulls continue to be on the sidelines, the downward movement in the pound is likely to continue to the levels of 1.2930 and 1.2860.
The material has been provided by InstaForex Company - www.instaforex.com