Euro Forecast: Calendar has a Downgraded Role in Current Environment

Euro Forecast: Calendar has a Downgraded Role in Current Environment

Fundamental Forecast for EUR/USD: Neutral

The Euro weathered the worst of the acute breakdown in risk appetite last week, even as concerns about Italy linger; Italian BTP 10-year yields are at four-year highs.

– The economic calendar remains mostly barren, and the current environment in financial markets means that minor data releases will most likely be overlooked.

– The IG Client Sentiment Indexremains ‘bullish’ for the Euro as retail traders continue to buy the US Dollar on dips.

See our long-term forecasts for the Euro and other major currencies with the DailyFX Trading Guides.

The Euro finished in the middle of the pack last week, gaining ground against four major currencies while slipping back against the other three. Of note, EUR/JPY dropped by -1.03% amid the global equity market rout. Somewhat curiously, despite risk appetite evaporating, EUR/NZD and EUR/AUD were the next two worst performers, down by -0.68% and -0.57%, respectively. Elsewhere, EUR/GBP added +0.06%, turning positive late in the week as Brexit concerns resurfaced, and EUR/USD added +0.31% as the US Dollar was caught up in

Article source: https://www.dailyfx.com/forex/fundamental/forecast/weekly/eur/2018/10/14/Euro-Forecast-Calendar-has-a-Downgraded-Role-in-Current-Environment.html