EURUSD rose yesterday and closed at 1.3756. Negative sentiment for the Euro was fuelled from comments from the ECB Vice President Vitor Constancio who projected a prolonged period of low inflation and also hinted that the future monetary policy would act act as the main factor in determining its medium-term inflation outlook. Constancio confirmed that the ECB is monitoring the exchange rate of the single European currency.
In the session today comments from Bundesbank pushed the EURUSD lower. The German central bank stated that is open to significant ECB stimulus in June if the inflation forecast for 2016 are cut. Data from the United States revealed that the Retail Sales in the United States rose 0.1 percent in April. Market had expected a 0.5 percent rise.
Support for the EURUSD is seen at 1.3706 and resistance is seen at 1.3844.
