The ECB meeting was one of the major events during the previous week, when it comes to macro data. As it was widely expected, the ECB left rates unchanged, amid uncertainties related to trade tariffs with the U.S.. The ECB maintains its previous macro outlook, viewing the Euro Zone economy as resilient but facing downside risks. President Lagarde highlighted global trade tensions, geopolitical instability and negative shifts in market sentiment as key risks to further growth. At the same time, Lagarde dismissed concerns about the stronger euro, reiterating that the ECB does not target the exchange rate directly. With the inflation level of 2% and deposit rate of 2%, the ECB is in the position to take a wait-and-see stance on further rate cuts, although some analysts are mentioning the possibility of another 25bps cut in September.
Other macro data for the Euro Zone and Germany include the HCOB Manufacturing PMI Flash for July, which stood at 49,8 for the Euro Zone and 49,2 for Germany. Both indicators were standing in line with market expectations. The Ifo business Climate in Germany in July reached 88,6, in line with market forecast.
The previous week was relatively weak when it comes to currently important macro data for the U.S. economy. Posted data include Existing Home Sales in June, which reached 3,93M and were a bit lower from forecasted 4,0M. The indicator dropped by 2,7% compared to the previous month. The S&P Global Manufacturing PMI flash for July reached 49,5 a bit lower from market forecast of 52,6. At the same time the S&P Global Services PMI flash for July beat market expectation with the level of 55,2. The durable Goods Orders in June dropped by -9,3% compared to the previous month, which was a bit lower from -10,8% expected by the market.
The ECB meeting left its mark on the parity of eurusd currency pair during the previous week. The euro strengthened till the level of 1,1786, but eased as of the end of the week, closing it at 1,1742. The currency pair was testing the 1,17 support line on Friday's trading session. The RSI continues to move at levels above the 50 line, ending the week modestly below the level of 60. The MA50 continues to diverge from MA200, without an indication of a potential cross in the near term period.
The week ahead is an important one from the perspective of macro data. A bunch of currently closely watched data for the U.S. will be posted, including PCE, NFP, JOLTs, Unemployment rate in July. In addition to data, the FOMC meeting will be held on Wednesday, July 30th, where the Fed will decide on interest rates. Current market expectation is that the Fed will leave rates unchanged at this meeting. However, the final decision is with the Fed, in which case, any surprises might significantly move the currency pair toward one side. Also, in case of surprises with any of the above mentioned macro data the market reaction could bring higher volatility. Precaution in trading with eurusd in the week ahead is highly advisable. As per current charts, there is a high probability that the currency pair will move to the downside to test the 1,17 support level for one more time. Levels around the 1,1650 might also be shortly tested. In case that the market decides for a higher ground, there is some probability for the level of 1,18, as the next resistance level to be tested shortly.
Important news to watch during the week ahead are:
EUR: GDP Growth Rate for Q2 for both Germany and the Euro Zone, Unemployment rate in Germany in July, Inflation rate in Germany and the Euro Zone preliminary for July,
USD: JOLTs Job Openings in June, GDP Growth Rate for Q2, Pending Home Sales in June, the FOMC meeting and Fed interest rate decision will be held on Wednesday, July 30th, PCE Price Index for June will be posted on Thursday, July 31st, Non-farm Payrolls for July, Unemployment rate in July, ISM Manufacturing PMI in July, University of Michigan Consumer Sentiment final for July.
Other macro data for the Euro Zone and Germany include the HCOB Manufacturing PMI Flash for July, which stood at 49,8 for the Euro Zone and 49,2 for Germany. Both indicators were standing in line with market expectations. The Ifo business Climate in Germany in July reached 88,6, in line with market forecast.
The previous week was relatively weak when it comes to currently important macro data for the U.S. economy. Posted data include Existing Home Sales in June, which reached 3,93M and were a bit lower from forecasted 4,0M. The indicator dropped by 2,7% compared to the previous month. The S&P Global Manufacturing PMI flash for July reached 49,5 a bit lower from market forecast of 52,6. At the same time the S&P Global Services PMI flash for July beat market expectation with the level of 55,2. The durable Goods Orders in June dropped by -9,3% compared to the previous month, which was a bit lower from -10,8% expected by the market.
The ECB meeting left its mark on the parity of eurusd currency pair during the previous week. The euro strengthened till the level of 1,1786, but eased as of the end of the week, closing it at 1,1742. The currency pair was testing the 1,17 support line on Friday's trading session. The RSI continues to move at levels above the 50 line, ending the week modestly below the level of 60. The MA50 continues to diverge from MA200, without an indication of a potential cross in the near term period.
The week ahead is an important one from the perspective of macro data. A bunch of currently closely watched data for the U.S. will be posted, including PCE, NFP, JOLTs, Unemployment rate in July. In addition to data, the FOMC meeting will be held on Wednesday, July 30th, where the Fed will decide on interest rates. Current market expectation is that the Fed will leave rates unchanged at this meeting. However, the final decision is with the Fed, in which case, any surprises might significantly move the currency pair toward one side. Also, in case of surprises with any of the above mentioned macro data the market reaction could bring higher volatility. Precaution in trading with eurusd in the week ahead is highly advisable. As per current charts, there is a high probability that the currency pair will move to the downside to test the 1,17 support level for one more time. Levels around the 1,1650 might also be shortly tested. In case that the market decides for a higher ground, there is some probability for the level of 1,18, as the next resistance level to be tested shortly.
Important news to watch during the week ahead are:
EUR: GDP Growth Rate for Q2 for both Germany and the Euro Zone, Unemployment rate in Germany in July, Inflation rate in Germany and the Euro Zone preliminary for July,
USD: JOLTs Job Openings in June, GDP Growth Rate for Q2, Pending Home Sales in June, the FOMC meeting and Fed interest rate decision will be held on Wednesday, July 30th, PCE Price Index for June will be posted on Thursday, July 31st, Non-farm Payrolls for July, Unemployment rate in July, ISM Manufacturing PMI in July, University of Michigan Consumer Sentiment final for July.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.