The Euro is slowly correcting. Overview for 12.08.2020
On Wednesday morning, EURUSD is slowly falling and regaining positions.
The major currency pair is retreating in the middle of the week and keeping the local downtrend alive. The current quote for the instrument is 1.1712.
The statistics from Europe published yesterday were quite strong; however, it didn’t support the Euro anyway because investors stopped “playing” against the USD thinking their attitude towards the “greenback” was too pessimistic. The ZEW Economic Sentiment improved up to 64.0 points in August after being 59.6 points the month before. Any reading above the psychologically-crucial level of 50 points indicates optimism, which means that businesses believe that the crisis situation is slowly reversing. The same indicator but for Germany went from 59.3 points to 71.5 points.
The PPI in the USA added 0.6% m/m in July after losing 0.2% m/m in June, which is better than the expected reading of +0.3% m/m. In the evening, we will see how much this may influence American inflation – the USA is scheduled to report on the Consumer Price index in July.
Average forecasts imply +0.3% m/m after +0.6% m/m in June.
There will some interesting reports from Europe today, such as the Industrial Production, which may add 10.1% m/m in June after expanding by 12.4% m/m in the previous month.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
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