Christine Lagarde; President of the European Central Bank

The EUR/USD has been on a losing streak for seven consecutive days. The pair was trading at 1.17635 ahead of the European Central Bank Interest Rate Decision for July.

EUR/USD Outlook

Eurozone Inflation Concerns

The EUR/USD pair will react to the European Central Bank (ECB) monetary policy statement due on Thursday. ECB President Christine Lagarde and Vice President Luis de Guindos will explain the bank’s monetary policy decision and address journalists.

According to ECB’s monetary policy statement for June, the bank maintained its interest rates. The Governing Council expects the key ECB rates to remain at a standstill until inflation growth is stable. The Governing Council is ready to adjust all its instruments accordingly. This will ensure inflation moves towards its aims in a sustained manner.

The deposit facility rate is expected to remain at -0.50%. the Eurozone Business Consumer Confidence for July will also be released on Thursday. Analysts expect Consumer Confidence to slip 2.5%.

Eurozone’s Manufacturing Purchasing Managers’ Index (PMI) for July will be released at the end of the week. The manufacturing PMI is expected to decline to 62.5. The services PMI for July will also be released on the same day and is expected to increase to 59.5.

US Economic Concerns

The EUR/USD pair will react to the United States’ weekly Initial Jobless claims data. The initial claims are expected to come in lower at 350,000 from the previous 360,000.

The US building permits for June came in lower than expected. The permits came in at 1.598 million which was weaker than the estimated 1.700 million. The monthly Housing starts in the US came in higher at 6.3% from the previous 2.1%.

The Existing Home Sales for June are expected to come in higher at 5.90 million from the previous 5.80 million.

The Delta coronavirus variant has the markets in fear due to its rampant outbursts. Investors are worried that the virus could hamper the economic recovery as well as inflation.

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign Up for Our Newsletters

Get exclusive content in your inbox.

You May Also Like

EUR/USD Forecast Ahead of US Inflation and Retail Sales Data

The EUR/USD pair surged on Friday after the disappointing US non-farm payrolls (NFP) data. The US will publish the latest inflation and retail sales data.

GBP/USD Forecast with BoE Interest Rate Decision on the Horizon

GBP/USD is seesawing along 1.3800 ahead of the BoE interest rate decision. It is likely to be range-bound between 1.3800 and 1.3900 ahead of the event.

GBP/USD Forecast Ahead of the UK Retail Sales

GBP/USD has eased on its decline ahead of the UK retail sales data. The data comes at a time when UK government postponed reopening by a month.

AUD/USD rebounds as Fed officials downplay inflation fears

AUD/USD is rebounding after Fed officials downplayed the ongoing inflation fears. US retail sales also missed the estimates by remaining stagnant.