The euro is unable to grow
14.09.2015
The outside lobby is too strong before the meeting of the US Federal Reserve.
This whole week will be concluded in the framework of the meeting of the US Federal Reserve. Before it the activity on the trading floors is at a minimum, and Wednesday evening and Thursday will have the major emotional load, but Friday will be the time to bring thoughts in order.
At the moment the pair is trading around the 1.1326 mark, although it grew a bit in the morning.
Today, the euro zone has presented statistics on industrial production in July. The index rose by 0.6% m/m (+ 1.9% y/y) against expectations of a more modest 0.3% m/m and 0.6% y/y. Statistics proved to be definitely positive, there are no "ifs" - and the euro could have reacted more noticeably if investors did not save energy before the meeting of US monetary policy.
If the parameters of the industrial production are rising, then, a good report on the manufacturing sector can be expected. This, in turn, would mean what the domestic demand is starting to expect - and that's another story, a more interesting and promising one. The euro zone has for too long stayed in the zone of decline and in March this year after the launch of QE it has actively received internal cash flows on the background of stimulation. Sooner or later it will impact positively on all, and without exception, the macroeconomic indicators in the region. The only question is how the ECB will continue to maintain these levels, because the stimulation can not be indefinite.
RoboForex Analytical Department
This whole week will be concluded in the framework of the meeting of the US Federal Reserve. Before it the activity on the trading floors is at a minimum, and Wednesday evening and Thursday will have the major emotional load, but Friday will be the time to bring thoughts in order.
At the moment the pair is trading around the 1.1326 mark, although it grew a bit in the morning.
Today, the euro zone has presented statistics on industrial production in July. The index rose by 0.6% m/m (+ 1.9% y/y) against expectations of a more modest 0.3% m/m and 0.6% y/y. Statistics proved to be definitely positive, there are no "ifs" - and the euro could have reacted more noticeably if investors did not save energy before the meeting of US monetary policy.
If the parameters of the industrial production are rising, then, a good report on the manufacturing sector can be expected. This, in turn, would mean what the domestic demand is starting to expect - and that's another story, a more interesting and promising one. The euro zone has for too long stayed in the zone of decline and in March this year after the launch of QE it has actively received internal cash flows on the background of stimulation. Sooner or later it will impact positively on all, and without exception, the macroeconomic indicators in the region. The only question is how the ECB will continue to maintain these levels, because the stimulation can not be indefinite.
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.