Euro Forecast: Quiet Calendar Means its Italy or Bust in Week Ahead

Euro Forecast: Quiet Calendar Means its Italy or Bust in Week Ahead

Fundamental Forecast for EUR/USD: Neutral

The Euro continued its streak of weakness, losing ground to five of the other seven major currencies as the calendar turned from October to November.

– There are no ‘high’ rated German or Eurozone data releases in the coming week, meaning the only potential domestic catalyst in the days ahead is progress around Italy’s budget (more attention will be paid to the US midterm elections and Brexit).

– The IG Client Sentiment Indexhas quickly flipped to bearish as retail traders buy the Euro dip.

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

The Euro was the third-worst performing major currency for the second week in a row, losing ground against all but for the Swiss Franc (EUR/CHF +0.52%) and Japanese Yen (EUR/JPY +1.01%). This was to no fault of the Euro; rather, buoyed risk appetite lifted higher yielding currencies, and progress on the Brexit front sparked a British Pound reversal (EUR/GBP -1.24%).

To this end, as the world’s reserve currency, the US

Article source: https://www.dailyfx.com/forex/fundamental/forecast/weekly/eur/2018/11/04/Euro-Forecast-Quiet-Calendar-Means-its-Italy-or-Bust-in-Week-Ahead.html