Weekly Forex Analysis: Consolidation if you loosen the CPI in the US

Weekly Forex Analysis: Consolidation if you loosen the CPI in the US

Analysis Department of Bankinter offers its forecasts for the next behavior currencies:

Eurodollar (€ / USD)

Crossing slid from 1.24 to 1.22 reaching  back our range set at 1.14 / 1.22 this year .

This week the key will be the CPI . If you descend, as expected, to 1.9% (estimated) from 2.1% previously could reduce the uncertainty that the Fed quicken the pace of normalization of monetary policy and influence on the European Central Bank. In this context, less volatile, we expect a consolidation of the Eurodollar around 1.23 .

Weekly estimated range: 1,222 / 1,235.

Euroyen (€ / JPY)

The yen appreciated from 137 to 132 for its quality of active refuge in a week of huge volatility in the currency market.

The next few days we expect more tranquility and fourth quarter GDP will be known (preliminary). It is expected to slow to + 1% from 2.5%. However, the breakdown is favorable for improving intake (+ 0.5% vs. -0.5% and above) and Investment (repeated 1.1%). Therefore, the yen should quote him positively and appreciate moderately

Estimated range (week): 131.8 / 134.1

Eurolibra (€ / GBP)

The upward revision of growth prospects in the UK and a tone more ” hawkish ” by the Bank of England, anticipate a less accommodative monetary policy and lay the foundation for the pound to appreciate .

This week the focus will be on the evolution of inflation and employment figures in the UK.

Estimated range (week): 0.879 / 0.889

Eurosuizo (€ / CHF)

The market correction and the search for safe haven assets has led to the franc appreciates this week – listed on maximum four months.

This week the focus will be on the evolution of volatility and the inflation indicators in Switzerland (CPI and output prices).

Estimated range (week): 1,145 / 1,154

 

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