EUR/USD Fundamental Analysis – August 18, 2015 – Forecast

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Updated: Aug 17, 2015, 11:11 UTC

Analysis and Recommendations: The EUR/USD eased but remained positive trading at 1.1101 down 10 points after the Eurozone trade balance printed stronger

EUR/USD Fundamental Analysis – August 18, 2015 – Forecast

Analysis and Recommendations:

The EUR/USD eased but remained positive trading at 1.1101 down 10 points after the Eurozone trade balance printed stronger this month. Traders are trying to decipher Fed moves ahead of Wednesdays Fed minutes release otherwise the markets are quiet today. The dollar rose against the euro on Monday as upbeat US data kept hopes for an interest rate rise as early as next month.

Sentiment got a lift on Friday as solid US industrial production, wholesale prices and July retail sales data all signaled the world’s top economy was strengthening. The numbers boosted expectations the US Federal Reserve could be set to raise its key interest rate for the first time in almost a decade as early as September – a plus for the dollar.

Calm was returning to currency markets after China spooked investors last week by devaluing the yuan and moving to a new system for calculating its daily trading reference rate.

The surprise move, followed by two days of major cuts, fanned fears of a currency war in which countries push down the value of their units to lift exports.

FxEmpire provides in-depth analysis for each currency and commodity 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.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
JPY	GDP (QoQ) (Q2)	-0.4%	-0.5%	1.1%
JPY	GDP (YoY) (Q2)	-1.6%	-1.9%	4.5%
EUR	Trade Balance (Jun)	26.4B		18.8B
USD	NY Empire State Manufacturing Index		5.00	3.86
CAD	Foreign Securities Purchases (Jun)			-5.45B