The euro started the week with growth
27.07.2015
The main currency pair strengthened at the start of Monday, but it is interesting for how long this optimism can last.
The single European currency on Monday morning is growing in tandem with the US dollar. For now there are not enough fundamental reasons for this, but, on the other hand, investors are clearly trying to "pull up" pair a little higher so that later on they have room to sell.
Morning statistics showed that the import prices in Germany in July fell by 0.5% m/m against the forecast of reduction by 0.3% m/m. A month earlier, the indicator fell by 0.2% m/m. This afternoon we will see statistical data on the business climate index in Germany from the Ifo Institute in July. The average market forecast assumes that the index rose to 107.2 points. A reading above 100 points looks quite neutral and indicates a stable mood in business circles of the government.
In the afternoon, the US will publish data on orders for durable goods.
However, there are reasons to believe that for the next three days the market participants will pay very little attention to the statistical data: this week, a regular meeting of the US Federal Reserve will be held. From the meeting the market is just waiting for specifics on the question of the time of the rate hike. Maybe it will happen in the beginning of the fourth quarter of this year. It would suit the Fed and everyone else, and not hit the developing economies so much. The alignment of forces in the foreign exchange market predicts at least one fact of a raise in rates before the end of 2015.
RoboForex Analytical Department
The single European currency on Monday morning is growing in tandem with the US dollar. For now there are not enough fundamental reasons for this, but, on the other hand, investors are clearly trying to "pull up" pair a little higher so that later on they have room to sell.
Morning statistics showed that the import prices in Germany in July fell by 0.5% m/m against the forecast of reduction by 0.3% m/m. A month earlier, the indicator fell by 0.2% m/m. This afternoon we will see statistical data on the business climate index in Germany from the Ifo Institute in July. The average market forecast assumes that the index rose to 107.2 points. A reading above 100 points looks quite neutral and indicates a stable mood in business circles of the government.
In the afternoon, the US will publish data on orders for durable goods.
However, there are reasons to believe that for the next three days the market participants will pay very little attention to the statistical data: this week, a regular meeting of the US Federal Reserve will be held. From the meeting the market is just waiting for specifics on the question of the time of the rate hike. Maybe it will happen in the beginning of the fourth quarter of this year. It would suit the Fed and everyone else, and not hit the developing economies so much. The alignment of forces in the foreign exchange market predicts at least one fact of a raise in rates before the end of 2015.
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.