EUR/USD (current price: 1.1060)
The Euro rebounded on Tuesday compared to its most important peer despite the mostly bullish news that came out regarding the U.S. economy. The quarterly GDP number was 1.1%, slightly beating the consensus estimate of 1%, while the CB Consumer Index posted the biggest positive surprise of the past 12 months with a reading of 98.1, compared to the estimated number of 93. The USD didn’t react to the good numbers, as investors think that it is still unlikely that the FED will hike rates just after the Brexit vote.
Our assessment: EUR/USD got slightly higher in relatively calm trading, but the underlying short-term trend remains bearish, and a dip back below 1.10 is likely in the coming days.
