EUR/USD Forecast: Scope for a move to 1.1100
|- EUR/USD meets support in the 1.1130 area so far.
- Repatriation flows continue to support EUR, but momentum fades.
- Markets’ focus stays on yields, US data, US-China trade war.
After two consecutive days with negative price action, EUR/USD appears to have met some dip-buyers in the second half of the week, although gains appear so far contained by the 1.1150/60 band.
The pick up in the sentiment around the Greenback remains firm, as US-China trade tensions have subsided somewhat particularly after the White House delayed the implementation of another round of tariffs on Chinese products.
However, the outlook on EUR is expected to remain fragile as ‘repatriation’ flows seems to be losing traction, German yields tumble further and results from the docket in Euroland are everything but encouraging. If we add the prospects of further easing by the ECB as soon as at the September meeting, there seems to be one way for the single currency in the near to medium term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.