Community Forecasts for May 23-27: EUR/USD 1W Chart - Community Forecasts - Dukascopy Bank

Tue, 24 May 2016 12:08:04 GMT
Source: Dukascopy Bank SA
 
© Dukascopy Bank SA
In course of the previous trading week, the EUR/USD currency pair continued to depreciate moderately, prolonging its negative trend. According to the latest Eurostat release, the CPI dropped sharply in April from 1.2% to 0.0% month-on-month. The yearly print turned negative and came out at -0.2%. In addition, the core gauge stayed at 0.7% year-on-year. In the middle of the week, the Greenback extended its after the minutes from the Federal Reserve's latest meeting opened the door to a rate hike in June. As long as the second quarter GDP looks healthier and the jobs and inflation readings show further improvement, the Fed officials would be content with raising the target for the Fed's rate at the June 14-15 gathering, the minutes from the April gathering showed. This week the sentiment dropped considerably, as 60% of all traders, who participated in our weekly Community Forecasts quiz, expect the Euro to lose. The US data will include reports on durable goods orders, initial jobless claims and pending home sales on Thursday. Based on all, the average estimate for EUR/USD currency pair rose to around 1.129 major level for Friday of this week, while the confident majority of all votes is located above the 1.12 level. Concerning traders' opinions, Jignesh supposes "Last week the Fed instilled confidence in the markets in regards to the rate hike path. Market participants may have underestimated the Fed's intentions. All eye will be on the end of the week's Q1 GDP number which has high expectations to come in positive. The Dollar may be able to extend it's run by posting a 4th week of gains if the number comes in positive."
© Dukascopy Bank SA

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