On Wednesday the 17th of July, trading on the euro closed up against the dollar, recovering about half of the losses incurred on Tuesday. The pair inched upwards during the Asian session, before dropping sharply to 1.1199 ahead of ECB member Benoît Cœuré’s speech. Reaction to the economist’s comment subsequently strengthened the euro against the dollar.
The UK’s inflation report showed consumer inflation unchanged at 2%, as had been predicted by experts. Core inflation in the Eurozone rose by 0.4%; 0.1% higher than the previous month. The euro continued to rise throughout the day, continuing into the US session. The pair closed day 0.1% up, which was undoubtedly facilitated in part by the Fed’s Beige Book.
Day’s news (GMT 3):
- 11:30 UK: retail sales (Jun), BoE credit conditions survey (Q2).
- 15:30 US: initial jobless claims (12 Jul), Philadelphia Fed manufacturing survey (Jul).
- 16:30 US: Fed’s Bostic speech.
- 21:15 US: Fed’s Williams speech.
In the short term, the EURUSD is likely to move within a range of 1.1194 to 1.1287. A breakout of 1.1194 will provide good reason to open short positions. We also shouldn’t rule out the possibility of revisiting the 1.1287 high.