Euro May Rise on PPI

Published 08/10/2017, 08:10 AM
Updated 07/09/2023, 06:31 AM

EUR/USD is still under pressure, and it’s all about geopolitics. Additional pressure comes from EUR/CHF moves, as traditional safe heaven swissy is very popular now.


However, we still have hopes that the conflict between Washington and Pyohgyang will not reach the critical point, and the current speculations just give us good opportunity to buy euro at cheaper price. Today new wave of speculations on QE tapering revived - ECB poll sees announcement of change of stimulus program in September.


If it were not for geopolitics, EUR would jump higher on the news. But now we have to just wait and look for interesting opportunities to enter the market with longs. For example, today the USA release PPI data which is perceived as a leading indicator of CPI scheduled for publication on Friday.
If the numbers come out below expectations, it may trigger EUR/USD reversal with initial target at 1.1790.

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