The Euro is back to falling. Overview for 17.08.2017

17.08.2017

There is a “gale” in the main currency pair this week as investors’ mood is changing every day.

The EUR/USD pair is falling on Thursday afternoon, although it moved to the upside in the morning hours. The current quote for the instrument is 1.1725.

In fact, the EUR/USD pair returned to its usual recent trading range between 1.1690 and 1.1850. Fluctuations inside this channel attract little attention. However, one can see that the market isn’t quite sure where to move next. Active purchases are quickly transformed into slow but stable sales.

The statistics published by the Eurozone today showed that the CPI in the region increased by 1.3% y/y in July, just as expected. The Core Inflation Rate was 1.2% y/y over the same period, which is more than the June reading of 1.1% y/y. The latter indicator excludes energy and food sectors.

It’s obvious that the ECB’s inflation target of 2% is still pretty far away. However, as long as the QE program is active, there is no sense to wait for any changes in the dynamics, because the QE will suppress the CPI and make it rise.

In the evening, the USA are going to publish a lot of interesting reports, that’s why fluctuations of the main currency pair might increase by the end of the trading session. For instance, one should pay attention to the Philly Fed Manufacturing Index in August, the Capacity Utilization Rate in July, and, of course< all reports on the Industrial Production.

 

RoboForex Analytical Department

 

Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.