EUR became less overbought. Overview for 19.07.2023
The major currency pair has moved lower and is consolidating. The current EURUSD quote is 1.1230.
EURUSD simply got rid of some of its overbought status after renewing the yearly high of 1.1280. From a market perspective, this does not change much: the US dollar remains weak due to the anticipation of decisions by the Federal Reserve regarding interest rates.
The US presented ambiguous statistics yesterday. For example, retail sales in June increased only by 0.2% m/m, against the forecast of 0.5%. Here, the seasonal factor of demand decline may have had an impact. On the other hand, retail prices remain high, limiting buyer activity.
The volume of industrial production continued to fall. In June, the indicator dropped by 0.5% m/m, matching the May figures. Production is decreasing due to uncertainty about sustained demand at current prices.
Today attention should be focused on the final inflation statistics for the eurozone for June. The indicator could remain at 5.5% y/y. In the evening, the US will publish the report on new housing starts for 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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