Weekly Analysis and Recommendation:
The EUR/USD gained this week to close at 1.3634 as the US dollar tumbled on lackluster economics data which pushed the greenback to a recent low. The U.S. dollar edged lower on Friday against a basket of major currencies and looked set for a second week of losses after positive data on consumer sentiment failed to boost expectations for a rise in interest rates any time soon.
The Thomson Reuters/University of Michigan’s final June reading on the overall index on consumer sentiment came in at 82.5, up from 81.9 the month before and above the median forecast of 82.0 among economists polled by Reuters.
Analysts said the upbeat consumer sentiment data left traders cold since it failed to dispel worries about the U.S. economy after data on Thursday showed slightly weaker-than-expected data on consumer spending in May and weekly jobless claims.
Annual inflation in Germany, the euro zone’s largest economy, rose to 1% in June. The inflation data are harmonized in order to compare with other countries in the European Union. The tick higher in German inflation could give the European Central Bank some breathing room as it fights to stave off deflation.
Fed Chair Janet Yellen will be delivering the biggest speeches of her short time at the helm over the next couple of months. Her summertime speech schedule starts with an IMF conference next Wednesday that will be hosted by IMF head Christine Lagarde with the focus being on issues in central banking which could leave the risks wide open.
Historical: From 2011 to Present
Highest: 1.4577 USD on Jul 03, 2011
Average: 1.3165 USD over this period.
Lowest: 1.2041 USD on Jul 24, 2012
