The Euro is back to growing
31.08.2015
On Monday, the main currency pair is strengthening, but the week is going to be volatile and worrying.
The macroeconomic calendar has too many important releases this week – from the European Central Bank meeting to the package of statistics on the American labour market – for investors to keep calm and quiet. In the beginning of the week the Eurodollar is growing, which is expectedly affected by the previous movement and the data published today.
At the moment, the main currency pair is trading near 1.1215.
Today, the euro region has published the preliminary data on the inflation in August. According to EUROSTAT, consumer prices added 0.2% against the expected 0.1%. Some volatile goods – excise – have gone up by 1.2% against 0.9% in the previous month. The core inflation is 1% y/y with the predicted number of 2%. Comparing by months, the major index of consumer prices seasonal adjusted has grown by 0.1%. This data completely matched the expectations.
We’ve been witnessing low inflation in the euro zone for the 21st month in a row. The tendency is getting better, but improvement of this indicator is very slow and barely seen by the average consumer. The rapid growth of inflation is awaited by the European Central Bank only the next year, and the official forecast suggests CPI growth by 1.5% in 2016. The regulator expects that at the end of this year the inflation won’t exceed 0.3%.
We’re beginning to think that the ECB puts high hopes on the effect from QE. This Thursday, the ECB will have a meeting, after which the regulator might tell about evident improvement in the economy. Each positive fact will result in the growth in the euro/dollar currency pair.
RoboForex Analytical Department
The macroeconomic calendar has too many important releases this week – from the European Central Bank meeting to the package of statistics on the American labour market – for investors to keep calm and quiet. In the beginning of the week the Eurodollar is growing, which is expectedly affected by the previous movement and the data published today.
At the moment, the main currency pair is trading near 1.1215.
Today, the euro region has published the preliminary data on the inflation in August. According to EUROSTAT, consumer prices added 0.2% against the expected 0.1%. Some volatile goods – excise – have gone up by 1.2% against 0.9% in the previous month. The core inflation is 1% y/y with the predicted number of 2%. Comparing by months, the major index of consumer prices seasonal adjusted has grown by 0.1%. This data completely matched the expectations.
We’ve been witnessing low inflation in the euro zone for the 21st month in a row. The tendency is getting better, but improvement of this indicator is very slow and barely seen by the average consumer. The rapid growth of inflation is awaited by the European Central Bank only the next year, and the official forecast suggests CPI growth by 1.5% in 2016. The regulator expects that at the end of this year the inflation won’t exceed 0.3%.
We’re beginning to think that the ECB puts high hopes on the effect from QE. This Thursday, the ECB will have a meeting, after which the regulator might tell about evident improvement in the economy. Each positive fact will result in the growth in the euro/dollar currency pair.
RoboForex Analytical Department
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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.