Community Forecasts for June 13-17: EUR/USD 1W Chart

Source: Dukascopy Bank SA
© Dukascopy Bank SA
This week can set the course for EUR/USD for next several months. Both technicals and fundamentals are pointing at high volatility. The Federal Reserve is going to announce its benchmark interest rate and publish the rate statement as well as economic projections at the conclusion of its two-day policy meeting. As usual, the announcement is to be followed by a press conference by Fed Chair Janet Yellen. Concerning the development of the previous week, the EUR/USD extended its gains reaching 1.14 mark for the first time in three weeks, as the European Central Bank launched a comprehensive corporate bond buying program on Wednesday. 
In line with the fact that overall market sentiment is slightly bullish, more than 61% of Dukascopy Community members are having positive view on the pair, while consensus forecast stands at 1.134, just slightly below the above-mentioned level. It will be also worth mentioning that last week, in turn, almost 66% of all votes were bearish. "A lot emphasis is put on the latest NFP figures with speculation the Fed may come across more dovish in their monetary policy meeting this week. Yellen has already indicated that too much emphasis should not be placed on a single data point, suggesting the board may not come across nearly as dovish as the markets may expect in regards to the labor markets.  However, PCE inflation continues to remain subdued tying the Fed's hands in providing clear forward guidance on normalization" said Jignesh. Nonetheless, vast majority of traders believe the EUR/USD pair will be highly volatile this week.

© Dukascopy Bank SA

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