EUR/USD (current price: 1.1024)
The Eurozone Current Account Balance came in at a surprisingly high 30.8 billion, compared to the consensus estimate of 24.9 billion. The relatively weak Euro and the struggling Chinese economy mean that the trend might continue in the coming months. The German PPI also beat expectations with a reading of 0.4%, while Consumer Confidence was in line with expectations. The pair traded in a narrow range just above the 1.10 level, before today’s crucial announcement, as the long-term picture remains neutral.
Our assessment: The most traded pair still trades in a narrow consolidation zone following the decline after the Brexit vote, but volatility might jump today after the ECB’s releases.
