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Despite the domination of bearish expectations, the single European currency was developing in a rather bullish environment during the previous trading week, but the pair's opening level still managed to match week's closing level. The pair started last week at the 1.080 level amid calm session on Monday. Earlier in the day, German Ifo surveys for January missed expectations, as the business climate survey dropped from 108.6 to 107.3, thus the data failed to spur any volatility on the Euro. However, in the middle of the period, the pair started to rose gradually, after the US durable goods orders decelerated very notably. Meanwhile, on Friday, the surprising monetary policy decision from the BoJ cause some big movements on the pair. Moreover, later in the day, the Euro slipped around 100 pips since US data supported the Greenback with an advance in the US personal consumption expenditure as well as outstanding Chicago PMI. Overall the pair closed the week on the 1.081level.
Despite pure negative development of the pair during the end of January 25-29 week, participants of our weekly Community Forecasts quiz divided equally in their forecasts. Concerning trader's opinions, babanu is bearish on the pair and claims that "During the last week we had mixed action for the single currency: Price opened below the weekly pivot but eventually, broke it and went up to 1.0967. If the weekly pivot for the next week at 1.0862 is hold up any breaching attempts, then we will have a good ride to the South." This week's key events from Euro zone include German Unemployment Change as well as EU unemployment rate which has been already announced and showed a decrease of 20k points, for German and 10.4% for the overall EU unemployment rate. Meanwhile, on Thursday, the market will be waiting for the ECB President Mario Draghi speech.
© Dukascopy Bank SA