Weekly Forex Analysis: Inflation and rating in the US are key
Analysis Department of Bankinter offers its forecasts for the next behavior currencies:
Eurodollar (€ / USD)
The dollar will remain supported until CPI data will be published on Wednesday. A hypothetical pickup in core inflation (estimated to exceed the 2.0% threshold for the first time since February 2017) will contribute to support the dollar, but appreciate from current levels due to the risk that Moody’s changed the outlook the US rating from “stable” to “negative” on Friday .
Estimated range (week): 1,220 / 1,242.
Euroyen (€ / JPY)
Lower volatility favored the yen continue editing from 129.9 / 131.4 € up / €. So, again placed in our range for this year (130/140 / €) but for now, we believe it will remain close to the most popular part of this range (131/132 / €) and will cost you slide onto the end weaker (138/140 / €).
Estimated range (week): 130.9 / 132.4.
Eurolibra (€ / GBP)
The pound appreciated against the Euro despite weak economic data in the UK – Labor Costs, Sales Cars- PMI’sy.
This week the focus will be on the trade balance and industrial production but do not expect sharp movements in the price of the pound.
Estimated range (week): 0.876 / 0.870.
Eurosuizo (€ / CHF)
SNB’s strategy of betting on a weak currency is running and the franc is trading near the lows of the year. Note that this weakness comes despite the increase in market volatility and some deterioration in the macro European figures.
This week the focus will be on the jobs data and the real estate sector .
Estimated range (week): 1,173 / 1,183.