Good day forex traders.
Welcome to our weekly review of the EUR/USD. I hope the week was a bountiful one full of pips!
In the previous EUR/USD forecast we noted that the currency pair was ranging between the 1.16 and 1.18 region. We were on a lookout for a technical squeeze should market conditions permit.
Looking at the EUR/USD weekly chart above we observe that the currency pair continues to range between the 1.16 and 1.18 region. This suggests that the market remains undecided between the US dollar and the Euro.
A technical squeeze remains a possibility and a clear breach of either 1.16 or 1.18 is a prerequisite.
Over in the US, it was reported that the second quarter economy growth rate was the fastest pace in almost 4 years, clocking in at 4.1% annualised. BBC reports:
” The US economy grew at its fastest pace in nearly four years in the second quarter, expanding at an annualised rate of 4.1%, official figures show.
The gains were driven by strong consumer spending and a surge in exports as firms rushed to beat new trade tariffs.
US President Donald Trump described the acceleration as “amazing”, claiming it as proof his policies are working.
But many analysts cautioned that growth could cool in coming months.
“In one line: Looks great; won’t last,” wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics. ”
Having said so, it was also reported that housing investment dropped. This is an area to monitor as housing activities play a significant part of the economy.
In the upcoming week, the US Federal Reserve will release the latest interest rates. The US Non-Farm Payroll is also due to be released on the end of the week. Be mindful of unexpected developments and do practice proper money management.