© Dukascopy Bank SA
During the previous trading week, the EUR/USD currency pair again entered negative territory, by falling below the 1.13 major level back on Thursday. The dollar surged to a new two weeks high after a strong batch of economic data which bolstered support for a June interest rate hike from the Federal Reserve. The US Department of Labor reported that initial jobless claims dropped by 13,000 and slipped to 253,000 equaling lows from early-March period. However, gains in the dollar were limited following the release of soft consumer inflation data. In March, the Consumer Price index rose 0.1% for the month being slightly lower than estimates of 0.2% gains. The Core CPI index, also added 0.1% one month after jumping 0.3% in February. Eventually, at the end of the week, the greenback slid following the release of lackluster US economic reports. However, its losses was still incomparable to the single European currency thus the pair end the week at 1.129 level.
This week sentiment deteriorated further, as only 45% of participants in our quiz expect the Euro to rebound. In course of the following working week, analysts are waiting for a big portion of data and announcements. It includes a report on existing home sales and report on initial jobless claims as well as data on manufacturing activity in the Philadelphia region on Thursday. From the European side, the ECB is to announce its monetary policy decision. The rate announcement will be followed by a post-policy meeting press conference with President Mario Draghi.
© Dukascopy Bank SA