EURUSD retreated yesterday and still remains under pressure.
The major currency pair is being sold for no reason at all. The current quote for the instrument is 1.1600.
Local loss of interest in risk attitude made the European currency fall yesterday. The economic calendar was rather neutral and no monetary policymakers delivered any speeches, so the market managed to balance the major currency pair in anticipation of the ECB meeting by itself.
To rise steadily, the Euro needs good news, for example, some strong macroeconomic statistics and “hawkish” comments from the regulator. However, none of these are expected in the nearest future.
Yesterday, Germany published a weak report on the Ifo Business Climate, which dropped to 97.7 points in October after being 98.9 points in the previous month and against the expected reading of 98.2 points. Germany is still experiencing supply shortages – they can be seen in this report. The Bundesbank Monthly Report published yesterday said that the German economy may significantly slow down in the fourth quarter of 2021 due to the weakness of the service industry and ongoing supply shortages. At the year-end, the German GDP may be pretty much below the forecasted reading of 3.7%. The regulator believes that inflation will continue rising in the nearest future but may slowly drop in the next year.
There won’t be any significant reports from Europe today but the US is planning to release some, for example, the New Home Sales for September and Conference Board Consumer Confidence for October, which is expected to decline, thus having a negative influence on the “greenback”.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.