Community Forecasts for August 17-21: EUR/USD 1W Chart

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Throughout the past week, the most traded currency pair showed a spectacular performance, hovering  around the average weekly price level of 1.125, and falling into a red territory in the beginning of the five-day trading period, after data revealed that German economic sentiment unexpectedly deteriorated this month. The closely watched ZEW index of German economic sentiment went down to 25.0 this month from 29.7 in July, while analysts had expected the index to reach 32.0 mark. According to the records, it was the lowest level in nine months, as concerns over the current geopolitical and global economic situation weighed. However, the EUR/USD experienced a sharp rebound  on August 12 and moved sideways for the rest of the week. The single European currency rose to two week highs, due to Chinese Yuan devaluation, while investors continued to unwind Euro-funded positions on the Chinese currency. Eventually, the Greenback accelerated on Friday spurred by the release of upbeat US data on producer prices and industrial output, but still ended the week broadly lower against a basket of major currencies, as uncertainty over China deepens. 
Traders see the pair to  remain flat, as the median forecast of Community members for the pair's close price for August 21 is 1.115.
According to Fundamental Analysis Contest, majority of respondents believe that the upcoming data will have a bullish impact on the US Dollar. On Thursday, the US is to release reports on initial jobless claims, existing home sales and manufacturing activity in the Philadelphia region. The next day the Euro Zone, in turn, is expected to announce survey data on manufacturing and service sector activity.

© Dukascopy Bank SA
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