EUR/USD Fundamental Analysis – November 23, 2015 – Forecast

Analysis and Recommendations:

The EUR/USD fell 46 points to 1.0688 after speeches from Mario Draghi of the ECB and German Buba President Weidmann. Also German producers prices printed well below expectations.  The euro fell for the first time in three days after European Central Bank President Mario Draghi said policy makers will do what they must to raise inflation “as quickly as possible.”

The shared currency approached a seven-month low against the dollar and weakened versus all but one of its 16 major peers. Draghi said in Frankfurt that downside risks to price growth have increased in recent months. He also said that officials can’t ignore low core inflation. The euro fell earlier after data showed German producer prices declined more in October than economists forecast.

Draghi said last month that ECB policy makers would review the degree of monetary stimulus at their December meeting. Since then, the euro has weakened almost 6 percent versus the dollar as traders increased bets that officials may extend the bond-buying program or further cut the deposit rate.

European Central Bank President Mario Draghi set the scene for further stimulus in two weeks’ time, saying the institution will do what’s necessary to reach its inflation goal rapidly. The euro fell.

“If we decide that the current trajectory of our policy is not sufficient to achieve that objective, we will do what we must to raise inflation as quickly as possible,” Draghi said in a speech in Frankfurt on Friday. “In making our assessment of the risks to price stability, we will not ignore the fact that inflation has already been low for some time.”

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:

 

Upcoming Economic Events that you should be monitoring:

Monday, November 23, 2015

Government Bond Auctions

Date Time Country

Nov 20 16:30 Italy Announces details of CTZ/BTPei on 25 Nov

Nov 23 12:00 Belgium Auctions OLOs

Nov 23 N/A US Holds 2-year note auction

Nov 24 17:30 Italy Announces details of BTPs/CCTeu on 27 Nov

Nov 24 N/A Holland Eur 1.0-2.0bn 0.25% Jul 2025 DSL

Nov 24 N/A US Holds 5-year note auction

Nov 25 11:03 Sweden Holds bond auction

Nov 25 11:10 Italy Auctions CTZ/BTPei

Nov 25 11:30 Germany Eur 3bn 1.0% Aug 2025 Bund

Nov 25 N/A US Holds 2-year FRN auction

Nov 25 N/A US Holds 7-year note auction

Nov 26 11:03 Sweden Holds bond auction

Nov 27 11:03 Sweden Holds bond auction

Nov 27 11:10 Italy Auctions BTPs/CCTeus