The euro leaves August in the lows

29.08.2014
In the end of the summer the main currency pair is trading down after weak data on inflation in the euro area.

The euro/dollar has almost no chance of "rehabilitation" in the near future - unless, of course, the evening economic statistics United States would suddenly come out bad. In the meantime, investors are focused on the euro zone, its weak reports and the forthcoming meeting of the European Central Bank.

Thus, a preliminary calculation of the consumer price index in August showed that inflation in the E-18 was only 0.3% y/y, as expected. A month earlier, the indicator stood at 0.4% y/y.

So far the monetary steps taken by the ECB in the past six months did not bear any fruit. In the fall two auctions in the format of LTRO are scheduled to be held, but it is doubtful that without enhanced support and implementation of quantitative easing there could be a stabilization period.

It is possible that in the near future, the EUR/USD will move to 1.3100, thereby updating the annual "bottom”.
 
RoboForex Analytical Department

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