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Euro Forecast: EUR/USD Price Outlook Bearish Ahead of Key Eurozone Data
Fundamental Euro Forecast: Bearish
The European Central Bank’s Governing Council proved just as dovish as analysts had expected last week, accentuating a decline in EUR/USD that started before the announcement and continued after it.
Now, further losses are likely over a week packed with important Eurozone data ranging from Germany’s Ifo index to official statistics on GDP growth, inflation and unemployment.
Euro price at risk of further losses
The coming week is packed with potentially high-impact market-moving economic data from the Eurozone and, ahead of it, the slide in EUR/USD that began last Thursday is most likely to continue. What happens after the numbers, that are mostly unveiled on Thursday and Friday, depends of course on how strong or weak they are but last week’s policy statement by the European Central Bank was so dovish that further Euro losses are now highly likely.
https://www.dailyfx.com/forex/fundamental/forecast/weekly/EUR/2021/07/18/Euro-Forecast-EURUSD-Price-Outlook-Still-Negative-ECB-Meeting-in-Focus.html
Fundamental Euro Forecast: Bearish
The European Central Bank’s Governing Council will announce its latest decision on Eurozone monetary policy this coming Thursday and all the indications are that it will be one of the last major central banks to tighten policy after the slump caused by the coronavirus pandemic and subsequent recovery.
If that continuing dovish stance is confirmed by the ECB and its President Christine Lagarde at her post-meeting news conference, the current weakness of EUR/USD will likely persist even if some of this narrative has already been priced in to the exchange rate.
EUR/USD has been on a roller coaster ride over the past fortnight; its next move could be lower, triggered by the coming week’s Eurozone inflation numbers.
Last week was all about waiting for US inflation data and the ECB; the week ahead will be spent hoping for Federal Reserve guidance on US monetary policy – and EUR/USD is unlikely to move far eithe.