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EUR/USD Forecast Sep. 8-12

EUR/USD Forecast Sep. 8-12

EUR/USD had a dramatic week, falling once again and losing the 1.30 line as the ECB surprised with strong measures. Will we see more falls or can a correction be expected now? Trade balance figures, and industrial output numbers are among the indicators released this week. Here is an outlook on the highlights of this week and an updated technical analysis for EUR/USD, now on lower ground.

The ECB fired its guns: a surprising rate cut in all rates (including a deeper negative deposit rate) and an announcement about a “sizable” ABS program. While Draghi is avoiding government bonds, it is clear that the balance sheet is about to grow significantly, and this is euro-negative. Elsewhere in zone, forward looking PMIs did not really shine in the euro-zone, while German figures looked good. In the US, the economy gained only 142K jobs in August, but the miss in the NFP did not have a big impact on the greenback, as the US economy looks good in general. What’s next for the pair?

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