Good day forex traders,
Welcome to our weekly review of the popular EUR/USD currency pair.
In the previous forecast we noted that the currency pair was consolidating. A prolonged phase of such might bring about a return of bearish momentum. It is important to monitor closely.
Looking at the EUR/USD weekly chart above, we note a possible reversal as the bullish momentum halts for now. If the upcoming week remains below the bullish trend line, we may be seeing a sustained bearish momentum.
There is significant attention given to the US dollar of late. The curreny has strengthened and expectations of a continuing stance of the US Federal Reserve to hike the interest rate remain.
The US economic growth outlook is looking good and has surprised analysts. The revision upwards is likely to generate increased demand for the US dollar. BBC reports “
The US economy grew even faster in the second quarter than previously thought, new figures have indicated.
The Commerce Department said it grew at a 3.1% annual rate over the three months to the end of June, up from a previous estimate of 3%, which was itself revised up from an initial 2.6%.
The further upward revision came as a surprise to analysts, who had it expected it to stay the same.
Higher consumer spending, helped boost the figure, as did state expenditure.
The US economy is now growing at the fastest rate in two years. “
Now that it is widely accepted that economies on both sides of the Atlantic are growing, our focus needs to change to a question of which economy is doing better. A good starting point will be the upcoming US Non Farm Payroll.
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