- Michael Hewson, chief market analyst at CMC Markets UK
The single European currency advanced 0.15% on Monday and was changing hands around 1.3539 at the time of writing, erasing some of the losses that were logged during the last 20 trading days. Moreover, the most traded currency pair rebounded from a half-year low below 1.35-mark as risk-averse sentiment spreads amid investors. Moreover, the pair is expected to trade slightly higher ahead of the number of important economic indicators that are set to be unveiled later this week. While Eurozone manufacturing and services PMI are likely to remain almost unchanged, statistics from the world's largest economy will add volatility to financial markets. A pickup in inflation and durable goods orders will provide additional support for the Buck, and in case EUR/USD inches below 1.3477, bears will aim at monthly S2 at 1.3436.
Meanwhile, statistics from the 18-nation bloc continue to disappoint, with German PPI declining for the 11th consecutive month in June. According to the Federal Statistical Office, the headline annual PPI in June fell 0.7%, following a 0.8% drop a month earlier, meeting analysts' expectations. On a monthly basis, producer prices remained unchanged over the observed period. Another disappointment is a clear sign that the headline inflation indicator in the whole region is unlikely to pick up any time soon.
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