EUR/USD Fundamental Analysis – August 28, 2015 – Forecast

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Updated: Aug 27, 2015, 14:01 UTC

Analysis and Recommendations: The EUR/USD dipped to trade at 1.1280 reflecting a slight gain in the US dollar. Market news has been light while traders

EUR/USD Fundamental Analysis – August 28, 2015 - Forecast

Analysis and Recommendations:

The EUR/USD dipped to trade at 1.1280 reflecting a slight gain in the US dollar. Market news has been light while traders sit uneasy waiting to see how global traders react to China. The dollar strengthened against its main rivals Thursday after second-quarter gross domestic product growth was revised up to 3.7%, from 2.3%. Dennis de Jong, managing director at UFX.com, said the U.S. economy appears to be in “relatively decent health” after the number. But the “financial turbulence” of the past two weeks likely means the Federal Reserve won’t raise interest rates in September. The number was much stronger The ICE U.S. Dollar index was up 0.4% to 95.4630.

Federal Reserve Bank of New York President William Dudley said Wednesday that boosting short-term rates next month looks “less compelling” in light of the market’s volatility and worrisome news out of China.

The euro bounced from losses overnight that came after comments by European Central Bank chief economist Peter Praet, who said the risk of a lengthy period of very low inflation in Europe has intensified due to falling commodity prices and slower growth in emerging markets. The comments raised hopes that the ECB could unveil new stimulus measures in coming weeks.

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
AUD	Private New Capital Expenditure	-4.0%	-2.5%	-4.7%
GBP	Nationwide HPI (MoM) (Aug)	0.3%	0.4%	0.4%
GBP	Nationwide HPI (YoY) (Aug)	3.2%	3.1%	3.5%
EUR	Spanish GDP (QoQ) (Q2)	1.0%	1.0%	1.0%
RUB	Central Bank reserves (USD)			362.9B

Upcoming Economic Events that you should be monitoring:

Friday, August 28 2015

Cur.	Event	Actual	Forecast	Previous
JPY	Household Spending (YoY) (Jul)		1.3%	-2.0%
JPY	Household Spending (MoM) (Jul)		2.2%	-3.0%
JPY	National Core CPI (YoY) (Jul)		-0.2%	0.1%
JPY	Tokyo Core CPI (YoY) (Aug)		-0.2%	-0.1%
JPY	Retail Sales (YoY) (Jul)		1.1%	0.9%
CHF	GDP (YoY) (Q2)		0.9%	1.1%
CHF	GDP (QoQ) (Q2)		-0.1%	-0.2%
EUR	Spanish CPI (YoY) (Aug)		-0.1%	0.1%
EUR	Spanish HICP (YoY) (Aug)		-0.2%	0.0%
GBP	Business Investment (QoQ)		1.7%	2.0%
GBP	GDP (QoQ) (Q2)		0.7%	0.7%
EUR	German CPI (MoM) (Aug)		-0.1%	0.2%
USD	Core PCE Price Index (MoM) (Jul)		0.1%	0.1%
USD	Goods Trade Balance (Jul)			-62.26B
USD	Personal Spending (MoM) (Jul)		0.4%	0.2%
CAD	RMPI (MoM) (Jul)		-4.0%	0.0%
USD	Michigan Consumer Expectations			83.8