Euro US Dollar (EUR USD) Exchange Rate Price Action Predicted

August 12, 2016 - Written by John Cameron

STORY LINK Euro US Dollar (EUR USD) Exchange Rate Price Action Predicted

EUR/USD Exchange Rate Touches High of 1.11

Three key data sets are forecast to determine price action for the world’s leading currency pair during today’s session. By the latter part of yesterday’s European equities session, the euro to US Dollar exchange rate was lodged in the upper part of the 1.1100s having touched off an intraday peak of 1.1190 in the middle part of the day.

However, analysts forecast that this could alter this morning when the latest whole of eurozone Gross Domestic Product data is published. The provisional version of the Q2 figures are expected to reveal that the euroland economy expanded by 1.6% during the three months to the end of June – exactly the same level of growth as was seen in Q1.

Pound Euro Exchange Rate Unlikely to Return to Best Levels

However, analysts suggest that the uncertainty engendered by the UK European Union In / Out referendum, which took place in the final week of June, may see this key statistic disappoint to the downside and if such a result does materialise, then the euro (currency : EUR) may give up some of the near-term gains it has recorded against the Pound. The 1.2000 GBP EUR threshold now appears a long way off for the GBP EUR exchange rate, but some movement higher could be on the cards.

The other two tier one data sets out today come from the other side of the Atlantic; the closely-monitored US Advance Retail Sales data for July is penned in for publication at 1330 hrs BST today and analysts are predicting that it will show a weakening from June’s counterpart showing of 0.6%.

Will US Dollar Exchange Rates Firm on Domestic Data?

Dollar-watchers will be provided with further direction ninety minutes later when the final tier one data set of the week is released in the form of the latest edition of the US Michigan Confidence survey. A result of 91.5 is expected – up from July’s showing of 90.0. The Buck may therefore finish the weekly session with a flourish, potentially sending the EUR USD exchange rate down to the 1.1000 EUR USD level once more.

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