The Eurozone and US economic outlooks are mixed, amid concerns over how hard these economies are being hurt by the coronavirus pandemic in recent months.
As a result, the slew of key Eurozone and US data due for publication in the coming week could give investors a better idea of how the economies are performing. This could cause a shift in EUR/USD movement.
Monday will see the publication of German retail sales results, Eurozone unemployment, and manufacturing PMI stats for both the Eurozone and US.
Eurozone growth rate data from Q4 2020 will be published on Tuesday. This has potential to be one of the week’s most influential datasets.
For much of the past week, the Euro US Dollar (EUR/USD) exchange rate has been tumbling. Higher safe haven demand boosted the US Dollar (USD), while the Euro (EUR) was weighed by rival strength and central bank speculation.
EUR/USD opened the week at the level of 1.2171 and trended lower throughout the week. In the middle of the week, EUR/USD touched on a fortnight low of 1.2067.
On Friday though, EUR/USD saw a little more solid footing and recovered most of the week’s losses. At the time of writing on Friday afternoon, EUR/USD is trending in the region of 1.2140.
In the middle of the week, Euro investors were spooked by comments from European Central Bank (ECB) officials, suggesting that markets were underestimating the chances of interest rate cuts from the bank.
Before markets closed for the week, other officials said the chances of a rate cut happening any time soon were quite low. This helped the Euro to steady on Friday.
Written by FTG, Author from Investing
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