EUR/USD Fundamental Forecast – June 29, 2016

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Updated: Jun 28, 2016, 11:02 UTC

The EUR/USD added 32 points to trade 1.1090 as the markets eased back from the edge. Traders are closely monitoring the European leaders as well as the

The EUR/USD added 32 points to trade 1.1090 as the markets eased back from the edge. Traders are closely monitoring the European leaders as well as the ECB with Mario Draghi speaking today. ECB President Draghi in opening remarks to the ECB forum on central banking focused on the international dimension of global banking and policies, specifically the need for greater co-ordination across global central banks. This is likely to be a coded warning to China and Japan not to attempt competitive devaluations in an attempt to boost their growth prospects.

Given the increased levels of integration within the global economy and increase in overall trade volumes, the spill-over effects from monetary policy actions were greater.

In particular, there were concerns over adverse effects of diverging monetary policies across different countries, which cause large fluctuations in exchange rates and swings in capital flows.

According to Draghi, formal policy co-ordination may not be needed, but there was a case for alignment of policies. Effectively, this meant a shared diagnosis of root causes of problems and a shared commitment to base domestic policies on that diagnosis. In this context, global central banks needed to consider whether policies are properly aligned across jurisdictions.

He also called for greater co-ordination between monetary and fiscal policies. Although central banks needed to preserve their independence, he stated that monetary policy will achieve its objectives faster and with less collateral effects if the overall policy mix is consistent.

FxEmpire provides in-depth analysis for each asset we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Wednesday, June 29, 2016

Country	Name	Volatility	Previous
Japan	Large Retailer’s Sales	2	-0.8
Japan	Retail Trade (YoY)	2	-0.8
Japan	Retail Trade (MoM)	2	0
Australia	HIA New Home Sales (MoM)	2	-4.7
Germany	Consumer Confidence Survey	2	9.8
U.K.	Financial Stability Report	2
U.K.	Consumer Credit	2	1.287
U.K.	Mortgage Approvals	2	66.25
Eurozone	Economic Sentiment Indicator	2	104.7
Eurozone	Business Climate	2	0.26
Eurozone	Industrial Confidence	2	-3.6
Eurozone	Consumer Confidence	2
Eurozone	Services Sentiment	2	11.3
U.S.	Personal Consumption Expenditures – Price Index (YoY)	2	1.1
U.S.	Core Personal Consumption Expenditure – Price Index (MoM)	2	0.2
U.S.	Personal Consumption Expenditures – Price Index (MoM)	2	0.3
U.S.	Personal Income (MoM)	2	0.4
U.S.	Personal Spending	2	1
U.S.	Core Personal Consumption Expenditure – Price Index (YoY)	2	1.6
U.S.	Pending Home Sales (MoM)	2	5.1
U.S.	Pending Home Sales (YoY)	2	4.6