The Euro will continue to fall until the end of the week
Wednesday, February 28, trading in the Euro ended lower. Including today’s trading in Asia, the Euro dropped to 1,2184. On the background of General rise in price of the us dollar the depreciation of the Euro could be stronger. It from loosening saved the cross EUR/GBP, which rose 1% to 0,8869.
The pressure on the British pound was provided by the publication of the draft agreement on Britain’s withdrawal from the EU. According to this document, the parties are far from agreement on key issues, and this can lead to more severe conditions of a British exit from the EU.
In addition to the General strengthening of the dollar to the Euro was pressured by the decline in inflation in the Euro zone, as well as the upcoming parliamentary elections in Italy, which will be held on March 4.
The number of signed contracts to buy homes in the United States was -4.7% (forecast was +0.4%, the previous value is revised from 0.5% to 0.0%).The index of business activity in Chicago is at the level of 61.9 (the forecast was 64.2 b, previous reading was 65.7). The revised index value of the U.S. GDP for the fourth quarter of 2017 amounted to +2.5% (forecast was +2,5%, a preliminary value of +2.6%).
Now at the auctions in Asia buyers receive support from growing Euro crosses. Cross EUR/GBP is on the verge of falling – overdue downward correction to 0,8823. It is unlikely buyers will be able to keep the price at the level of 0.8870. And considering that in the Asian session, the dollar traded in positive territory against major currencies, the decline in cross pairs will cause a drop in EUR/USD to 1,2154. Today is saturated with news, so price fluctuations may differ from the forecast.
From 11:15 to 12:30 GMT will be released the index of business activity in the manufacturing sector in February in Switzerland, France, Germany, Eurozone and the UK.
At 12:30 GMT the UK will report the change in the volume of net loans to individuals, the number of approved applications for mortgage loans and consumer credit for January.
At 13:00 GMT the Eurozone will publish data on changes in unemployment for January.
At 16:30 GMT Canada will report on the change current account balance of the balance of payments for the fourth quarter, and the U.S. will publish data on the price index of personal consumption expenditures for January, to change the level of spending and income for January, and the number of initial claims for unemployment benefits.
At 17:45 GMT the U.S. will index of business activity in the manufacturing sector for February, and 18:00 GMT –ISM manufacturing index for February, the report on employment change construction spending for January. Also at this time the scheduled speech by fed Chairman Jerome Powell.
At 19:00 GMT a speech will be made by the U.S. Federal reserve, William Dudley.
At 22:00 GMT the U.S. will release the Beige book of the fed.