OctaFX | OctaFX Forex Broker
Open trading account
Back

EUR/USD forecasts: focus on German CPI – Commerzbank and Danske Bank

FXStreet (Edinburgh) - EUR/USD remains below the 1.06 handle at the beginning of the week, while market participants have shifted their focus to the flash German CPI for the current month.

Karen Jones, Head of FICC Technical Analysis at Commerzbank, suggested “The daily RSI has not confirmed the EUR/USD recent low. This non-confirmation of the down move continues to worry us as we approach major supports, namely the 1.0560/20, the 2000-15 support line and April low and also the 1.0457 March low, where we would expect to see some profit taking”.

Furthermore, Chief Analyst at Danske Bank Jens Sorensen argued “a sharper dip is seen in the cross near term but we still forecast a rebound in 6-12M. In a week that will be dominated by markets looking ahead to Thursday's ECB meeting, Fed speeches scheduled in coming days could serve as a reminder of near-term policy divergence across the Atlantic - even if US payrolls should come out on the weak side on Friday”.

EUR/JPY retakes 130 handle

The EUR/JPY pair is back above 130.00 levels in the early Europe as the common currency turned a blind eye towards the weak German retail sales data.
Read more Previous

AUD still “adjusting” - ANZ

Daniel Been, Research Analyst at ANZ, suggests that the RBA meets tomorrow and he sees a risk that it shifts its language on the AUD once again with iron ore prices down 20% since September and the AUD broadly unchanged, it’s not clear that the AUD is still “adjusting to the significant declines in key commodity prices.”
Read more Next
Start livechat