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During the previous trading week, the single currency generally outperformed the US Dollar, as the currency pair was pushed up on negative statistical data and Janet Yellen's dovish statement from the largest global economy. At the same time, the beginning of the week was marked by weak performance of the Euro, despite overall calm session. Therefore, the pair traded below 1.12 level during the first two days. However, already on Tuesday the EUR/USD pair managed to gain strong value, namely around 250 pips, due to Fed Chair Yellen's dovish speech which hinted at the possibility of a return to zero rates. Thursday, was another positive day for the single currency, since pair even managed to test some major resistance. According to the latest Eurostat release, the CPI estimate for March ticked higher from -0.2% to -0.1% year-on-year, while the core gauge improved to 1.0% from the 0.8% booked in February. Moreover, the latest inflation numbers are unlikely to change the stance of the European Central Bank; however, short-term relief rally for the euro still is observed. Eventually on Friday, Euro was positively affected by the German manufacturing PMI which came out above expectations in March, posting its 17th straight month in positive territory . The week was closed at 1.14level.
In a week time, the sentiment on this currency pair changed insignificantly, as now 46% of traders predict the Euro to rise in value, while the same number of traders forecasted this currency to decline last week. Among important news this week, traders should pay attention to Non-monetary policy ECB meeting on Wednesday as well as announcement of FOMC minutes in the same day.
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