Weak French data bearish for FR40
French economic data in the last couple of weeks were mixed. Contractions in retail sales and private sector business activity were deeper than expected, as was the decline in construction. Retail sales dropped 16% over year in March after 1.2% increase in previous month. The private sector activities contraction speeded up: the final reading of Markit’s composite PMI was revised lower to 11.1 in April after 28.9 reading for previous month. Readings below 50 indicate contraction. However, outflow of payments in current account slowed marginally: the current account deficit narrowed from 3.4 billion euro in February to 3.3 billion in March. And unemployment declined slightly: unemployment rate declined to 7.8% in Q1 from 8.1% in previous quarter. Deteriorating economic data are bearish for FR40.
Summary of technical analysis
|Buy stop||Below 4288.45|
|Stop loss||Above 4714.74|
Market Analysis provided by IFCMarkets
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