© Dukascopy Bank SA
© Dukascopy Bank SA
The single currency lost significantly against the Dollar in the middle of the week, despite the returned risk-off sentiment that has sent investors running for safe havens. Moreover, the next day, the Greenback received a boost from the better than expected durable goods orders, which improved notably to 4.9% from -4.6% in December. On Thursday, consumer prices in the Euro zone rose 0.3% on an annualized basis in January, keeping pressure on the European Central Bank to add additional monetary policy stimulus in March. Eventually on Friday, the upbeat macro figures helped the Greenback, pushing the pair below the 1.10 mark.
This week is presumed to be rich on important fundamental news. From the American side, traders could pay attention to the ISM prices paid as well as ISM Manufacturing PMI on Tuesday. The next day, the US employment change will be released, while the Euro zone, is going to reveal producer price index in the same day. At the end of the week, on Friday, additional US important data is going to be published, namely unemployment rate, nonfarm payrolls and trade balance.
The Participants of the Dukascopy Community Forecasts quiz support the general negative view on the pair, with 64.3% of all votes being short at the moment. The average expectation for the end of the current week is located at 1.081. According to Besim76 opinion, "The EUR/USD lost 1.82% this week as the markets reversed midweek. The euro fell on weak inflation data and stress over the possibility of an exit by the UK, therefore, I am expecting bearish trend".