EUR/USD Weekly Fundamental Analysis, October 27-31, 2014, Forecast

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Updated: Aug 25, 2015, 03:00 UTC

Weekly Analysis and Recommendation: The EUR/USD closed the week on a positive note at 1.2669 after rumors that only 25 banks failed the ECB stress test

EUR/USD Weekly Fundamental Analysis, October 27-31, 2014, Forecast

Weekly Analysis and Recommendation:

The EUR/USD closed the week on a positive note at 1.2669 after rumors that only 25 banks failed the ECB stress test ahead of the actual release which is scheduled for Sunday. The results of the ECB’s check-up on banks will be made official on Sunday. 105 banks passed the test, while 25 banks are said to fall short of ECB standards, Bloomberg reports. Meanwhile, sluggish earnings results from some of Europe’s key companies are also raising fears about the health of the global economy. Analysts are confident that because banks have been taking action for months now to plug any holes in their balance sheets, there will not be any nasty surprises.

News of another high-profile Ebola case in the US also had investors on edge today, while relatively upbeat German consumer confidence figures were brushed aside.

The euro rose on Friday ahead of an official report on the health of the euro zone’s main banks as investors continued a trend of covering their short-positions leading to buying of the currency against the U.S. dollar. The dollar weakened against other major currencies Friday in cautious trade ahead of next week’s Federal Reserve monetary policy meeting, expected to mark an end to its massive asset-purchase program.

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Historical: From 2011 to Present

Highest: 1.4577 USD on Jul 03, 2011

Average: 1.3165 USD over this period.

Lowest: 1.2041 USD on Jul 24, 2012

Major Economic Events for the week of October 27-31st

Time	Cur.	Imp.	Event	Actual	Forecast	Previous
Monday, October 27
		Holiday	New Zealand – Labour Day
	EUR		German Ifo Business Climate Index (Oct)		104.3	104.7
	USD		Pending Home Sales (MoM) (Sep)		0.5%	-1.0%
Tuesday, October 28
	USD		Core Durable Goods Orders (MoM) (Sep)		0.5%	0.4%
	USD		CB Consumer Confidence (Oct)		87.0	86.0
Wednesday, October 29
	NZD		Interest Rate Decision		3.50%	3.50%
Thursday, October 30
	EUR		German Unemployment Change (Oct)		5K	13K
	USD		GDP (QoQ) (Q3)		3.0%	4.6%
Friday, October 31
	EUR		CPI (YoY) (Oct)		0.4%	0.3%
	CAD		GDP (MoM) (Aug)