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The most popular currency pair opened a week on a positive note, however, did not manage to defend positions and started to decline gradually, reaching two week's lows. At the same time, Dukascopy Community members did not expect the EUR/USD currency pair to decrease in value, as 64.3% of votes were bullish. The pair has been negatively influenced both by fundamental data from the Eurozone and announcements from the United States. Initial jobless claims improved to 262,00 from 269,000 previously, while continuing claims worsened to 2,273K from 2,243K. Inflation in the US improved to 0.0% in January from -0.1% month-on-month, while the yearly change accelerated notably to 1.4% from 0.7% previously. In addition, the core gauge also ticked higher to 2.2% year-on-year and improved to 0.3% from 0.2%, on a monthly basis. All measures came out above market estimates. Meanwhile, the Euro zone's current account slipped to 25.5 billion euro in December from 26.9 billion euro, while analysts had predicted a much steeper decline to 22.3 billion euro. Moreover, a large account surplus might give a great support to the Euro on currency markets.
This week is presumed to be rich on important fundamental news, which may potentially influence movements of the pair even more. On Thursday, traders could pay attention to the announcement of consumer price index from the Euro zone. From the American side, in turn, the data release is going to be consist of consumer confidence on Wednesday, durable goods orders on Thursday and gross domestic product on Friday.
Participants of the Dukascopy Community Forecasts quiz support the general promising view on the pair, with 63.5% of all votes being long at the moment. The average expectation for the end of the current week is located at 1.115, slightly above the daily S1 level of 1.113.
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