MarketPulse | Jun 13, 2018 06:19AM ET
EUR/USD is steady in the Wednesday session. Currently, the pair is trading at 1.1760, up 0.13% on the day. In the eurozone, Employment Change edged up to 0.4%, above the estimate of 0.3%. Industrial Production declined 0.9%, weaker than the forecast of -0.6%. In the U.S, PPI is expected to rise to 0.3% and Core PPI is forecast to remain pegged at 0.2%. The Federal Reserve is expected to raise the benchmark rate by a quarter-point. On Thursday, German releases CPI and the ECB is expected to maintain rates at a flat 0.0%. The U.S will release retail sales reports and unemployment claims.
The Singapore Summit was a milestone, as it marked the first time that leaders of the United States and North Korea met face-to-face. However, the joint statement put out by Presidents Trump and Kim was short on details, which could explain a lack of movement in the currency markets following the summit. The joint statement reaffirmed North Korea’s full commitment to complete denuclearization, but there was no mention of a timetable or any verification mechanisms. Even if the summit was largely symbolic, there’s no denying that tensions have significantly eased and that the summit could mark a first step in bringing peace to the Korean peninsula.
Central banks will be in the spotlight this week, with rate statements from the Federal Reserve on Wednesday and the ECB on Thursday. The Fed is widely expected to raise rates, with odds of a quarter-rate hike at 94%. Although the rate increase has been priced in, the U.S dollar could still make some gains against its major rivals. In Europe, the ECB will be looking for any clues with regard to the ECB’s asset-purchase program. Currently, the bank is purchasing EUR 30 billion/mth, and the scheme is scheduled to wind up in September. However, some ECB policymakers want to phase out the program slowly, rather than turn off the tap completely in September. ECB chief economist Peter Praet recently said that the ECB board members would conduct a detailed discussion about the fate of the stimulus package at the June meeting. Mario Draghi will likely make mention of the program at his press conference, so traders should be prepared for some volatility from EUR/USD on Thursday.
EUR/USD Fundamentals
Wednesday (June 13)
Thursday (June 14)
*All release times are DST
*Key events are in bold
EUR/USD for Wednesday, June 13, 2018
EUR/USD for June 13 at 13:05 DST
Open: 1.1745 High: 1.1763 Low: 1.1730 Close: 1.1760
EUR/USD Technicals
S1 | S2 | S1 | R1 | R2 | R3 |
1.1448 | 1.1613 | 1.1718 | 1.1809 | 1.1915 | 1.1996 |
EUR/USD was flat in the Asian session and has edged higher in European trade
Further levels in both directions:
OANDA’s Open Positions Ratio
EUR/USD ratio is unchanged in the Tuesday session. Currently, long positions have a majority (54%), indicative of trader bias towards EUR/USD continuing to climb to higher ground.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.