© Dukascopy Bank
During the previous trading week, the EUR/USD currency pair started on a rather calm note and even managed to rise to the week's highs which equals 1.14 in the middle of the week ahead of major European data. Moreover, the dollar also supported the euro, being pushed lower against the other major currencies due to the release of disappointing US housing sector data which fueled concerns over the strength of the economy. According to the US Census Bureau, building permits fell 7.7% in March to 1.086 million units, after a 2.2% decline in the preceding month when its fall to 1.177 million units. Meanwhile, analysts had expected building permits to rise to 1.200 units last month. However, at the end of the week, the Greenback remained at one-week highs against the other major currencies in quiet trade on Friday, as disappointing data from the Euro zone continued to weigh on the euro as well as higher oil prices, which reached 5 weeks highs supported market sentiment.
This week sentiment deteriorated further, as only 27% 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 Fed Interest Rate decision as well Monetary Policy statement. Majority of traders support bearish outlook, while Jignesh adds "Last week's price action gave us a clue for a bullish cycle in the USD. This week the Fed will make it's rate announcement, and it appears there may be some long covering ahead of it to protect against any drastic moves on surprise events."
© Dukascopy Bank