This week, investors’ attention will be on the US Personal Consumption Expenditure Price Index (PCE Core Index) for May, which will be released on Friday. Data on the PCE Core price index, the Fed’s preferred measure of inflation, will provide new clues about when and how much the Central Bank might cut interest rates this year.
Fundamental overview euro dollar, Europe side
The bleak economic outlook for the Eurozone means the European Central Bank may be forced to make further interest rate cuts. The ECB began easing its restrictive monetary policy at its meeting in early June, however, officials refrained from committing to a specific rate cut path, remaining concerned about wage inflation risks, which could increase pressures on prices.
Meanwhile, political uncertainty increases as France heads towards early legislative elections, scheduled for June 30. French President Emmanuel Macron called early elections after his party suffered a defeat in the preliminary results of the European parliamentary elections held on June 9 by Marine Le Pen’s National Rally (RN).
Technical Analysis and Euro Dollar Forecasts
The fiber found itself facing a tough obstacle represented by the resistance 1.0740, with the exchange rate experiencing selling pressure which led it to retest the key 1.0700 level. From a technical point of view, with the RSI oscillator hovering around 40.00, it is likely that the exchange rate could resume its bearish trend with the annual level of 1.0643 representing the main objective.
Conversely, a close, albeit in negative territory, above 1.0730 would allow the euro-dollar bulls to reach the annual level of 1.0764, exceeding which would lead to the fiber being able to reach the key level of 1.0800.
For a look at all of today’s economic events, check out our economic calendar. You can also follow our Facebook page to stay updated on the latest economic news and technical analysis.
