Euro In Good Balance. Overview 16.07.2019

16.07.2019

The instrument has got on its feet again and stop declining by Tuesday morning, the current quotation being 1.1260.

Today is going to be full of curious statistics. Germany and the Eurozone are publishing ZEW data of Economic Sentiment in July. I both cases a deterioration of the index is forecast, which may put certain pressure on the euro.

The US are preparing statistical data on retail sales in June. It is forecast that the indicato has grown by 0.1% (calculated monthly) after an increase by 0.5% a month ago. It might be just a summer decline; it is worth considering other components of the report before rushing at some conclusion.

Also, the US is publishing the industrial production data today. The index may have grown by 0.1 (calculate monthly) compared to 0.4% previously. The main thing is that the index stays in the positive zone, though there is little dynamics in its development. The use of production capacities in June could have grown a little, becoming 78.2% against 78.1% previously. Chairman of the Fed Jerome Powell is giving his commentary this evening; right before the July session of the Federal Reserve the market is interested in everything concerning credit and monetary policy or the economy evaluation.

However, the dollar is experiencing the same pressure as before, judging globally. The market is expecting the Fed to decrease the interest rate by the end of the month in order to create milder and more comfortable conditions inside the economic system.

At the same time, there is no panic about the future of the dollar the macroeconomic system of the US remains stable. Friday report on the producer price index showed a 0.1% growth in June, in accordance with the forecasts. The data calculated yearly was a bit disappointing because in July the index grew by 1.7% against 1.8% in June. However, after the inflation data, presented earlier, that turned out impressively high (calculated monthly), there seems to be little problem in the producer price index.

Clearly, investors are not going to be deceived by that price parity; they are still expecting the decease of the interest rate in the end of the week. Anyway, the mentioned above are curios features of the present-day US economy.

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.