EUR/USD: European statistics will drive the trend

KEY GRAPHIC ELEMENTS

Central banks will liven up the foreign exchange market this week. Indeed, the Bank of Japan has decided to allow yields on 10-year Japanese government bonds to exceed 1%. Japan’s central bank, also known as the BoJ, kept its key rate at minus 0.1%, but raised its inflation forecast, saying it expected core inflation of 2.8%. for fiscal year 2024, instead of its previous forecast of 1.9%. This week we are also expecting the American central bank as the latest data suggests an economy still going strong with Gross Domestic Product (GDP) coming out above expectations and inflation in line with expectations. Today, new macroeconomic information is expected, namely inflation for the euro zone and GDP for the euro zone, published at 11:00 a.m. French time. Technically the European currency is still in a range between 1.08 and 1.04. We will be more sellers near the upper limit at 1.08 and more buyers near 1.04.

MEDIUM TERM FORECAST

Considering the key graphical factors that we have mentioned, our opinion is neutral in the medium term on the Euro Dollar (EURUSD).

We will maintain this neutral opinion as long as Euro Dollar (EURUSD) prices are positioned between support at 1.0550 USD and resistance at 1.0693 USD.

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