EUR/USD hovers at high near 1.1781

Justin Freeman

The euro is performing extremely well in its pair against the greenback at the moment, and several watchers of the forex markets believe that the conditions for it are looking great.

The currency benefited in particular on Wednesday after the US Federal Reserve revealed that it is extending key lending programmes until the end of the year.

It is currently hovering close to the 1.1781 mark.

The next challenge for the euro, however, looks set to be the decision of the Federal Reserve in relation to interest rates.

Several market watchers expect that there will be no change to interest rates.

However, given the most recent announcement from the Federal Reserve regarding lending programmes, it is expected that there may be more news.

It is also believed that the Fed is considering asset purchases.

This could have a crucial effect on the dollar, especially if the Fed’s moves fail to reassure the markets.

There is also a suggestion that the dollar is experiencing what is known as ‘crowding behaviour’, or mass ‘herd-style’ market movements.

If the dollar does not recover, then, the euro has it all to play for.

However, the current period is, of course, characterised by its relative instability.

The forex markets are far from predictable at the moment due to the impact of the coronavirus pandemic, so it makes sense to look ahead to see what hurdles could be on the cards for the currency.

The economic calendar is looking busy for the euro next week.

Monday morning will see unemployment change data from Spain released at 7am GMT, covering the month of July.

This was last recorded at 5,100.

Shortly afterwards at 7:15am GMT, meanwhile, the country’s Markit manufacturing purchasing managers’ index for July will be out.

This is due to show a change from 49 to 50.

The equivalent figures for other major European countries are also expected in the morning.

At 7:45am GMT, the figure for Italy will be revealed, and is forecast to show a change from 47.5 to 51.3.

Germany, which is the Eurozone’s biggest and arguably strongest economy, will see its figure released at 7:55am GMT.

This is set to show no change from its previous level of 50 – a development that could reassure euro traders.

On Tuesday, meanwhile, the producer price index for June from across the Eurozone will be revealed.

Year on year, this was last recorded at -5%.

There is not currently a forecast for where this might go next.

On Wednesday, retail sales figures for June from across Europe will be out at 9am GMT.

This looks set to show a change from -5.1% to -6.6%.

A rise is also expected on a month-on-month basis.

There, the figure is due to go from 17.8% to 19.1%, and will be revealed in the same time slot.


Justin Freeman

Latest news

Jittery Markets – What to Look Out For On 26th of January 2021
Monday saw the markets stall and nosedive on the back of more bad news for the aviation sector. Read more
A New President and All-time Highs
Stock Market Returns After Trump Wednesday morning saw Donald Trump depart the White House. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
BEST FOREX BROKER Visit broker
5
#2 Forex Broker Pepperstone LogoCFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9
#3 Your capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#5 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8

    Forex Fraud Certified Brokers

    IQ Option Logo
    Plus500 Small Logo
    IC Markets Logo
    Exness Small Logo
    ATFX Logo
    XM Logo
    Oanda Small Logo
    skilling logo
    Pepperstone
    HYCM Logo
    FXTM Logo
    BlackBull Markets Small Logo
    Forex.com Logo
    City Index Logo
    OctaFX Logo
    LegacyFX Small Logo