EUR/USD Fundamental Analysis October 10, 2014 Forecast

The EUR/USD rallied early on Thursday, but traders could not hold on to the gains, which is a strong indication that the rally was being generated by short-covering rather than new buying.

After early session strength, the Forex pair reversed to the down side, following bearish comments from European Central Bank President Mario Draghi. The Euro declined against the U.S. Dollar after Draghi said the central Bank must lift inflation from an “excessively low” level.

Also contributing to the weakness was a better-than-expected weekly unemployment claims report from the U.S. Labor Department.

Thursday’s reaction shows just how sensitive the Euro is to any negative comments. It also indicates that the short-term rallies are just short-covering, designed to alleviate the selling pressure, but also to set up the next shorting opportunity.

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 

                Currency                                                  Event                                                     Forecast        Previous

                 

                 EUR                                          French Industrial Production                                 -0.2%             0.2%

                 GBP                                          Trade Balance                                                       -9.6B             -10.2B

                 CAD                                          Employment Change                                            18.7K            -11.0K

                 CAD                                          Unemployment Rate                                              7.0%              7.0%

                 USD                                          Import Prices m/m                                                -0.5%             -0.9%

                 USD                                          FOMC Member Plosser Speaks

                 ALL                                           IMF Meetings

                 CAD                                          BOC Business Outlook Survey

                 ALL                                           G20 Meetings

                 USD                                          FOMC Member Fisher Speaks