As regards the key macro releases, Eurozone industrial production fell 1.0% MoM in May, whereas the median consensus expected a 0.2% decline. In addition, the US PPI excluding food and energy products in June increased by 5.6% YoY, while the median forecast called for 5.1%.
Fed Chairman Jerome Powell’s congressional testimony did not increase confidence that US monetary policy will be tapered sooner than expected. Powell’s testimony continues today before the Senate, and market participants might hear some more hawkish overtones this time around.
Meanwhile, EURUSD showed a zigzag pattern during the first half of trading on Thursday, July 15, while trending moderately higher, up to 1.1845. In our view, the pair could test the upper bound of the medium-term descending channel, then decline to 1.1704.