Week in FX Europe – EUR Waits For Helicopter Ben

It’s all about the Fed. The crying has stopped, while the bleeding has slowed somewhat, ahead of the FOMC meet next week. The EUR’s recent price action continues to beat the bears despite it’s own soft Euro-data. On Friday, the ‘mighty ‘ dollar has ended up aiding the 17-member single currency even further, pushing it to finish the week in technical bullish territory.

The Reuters/University of Michigan consumer sentiment for June came in below expectations, and applied temporary weekending pressure on the dollar. With so many licking this week’s asset price destruction wounds, very few investors had any interest to ply their wares after Friday morning’s data releases. Instead they seemed much happier to wade to sidelines and wait for Ben’s press conference next Wednesday.

The EUR has managed to hold, for a second consecutive day, just above the accelerated trend support of 1.3300. According to technical analysts it’s hoping to stage a clear break above resistance at 1.3342 – the 61.8% retracement and late February high. If achieved, this would leave the immediate risks marginally higher and possible push through the optioned protected next big figure – 1.3400. Any momentum forcing the EUR below 1.3310, for a period of time, will open the door for the currency to test Wednesday’s low at 1.3279.


* AUD RBA Meeting’s Minutes
* GBP Core Consumer Price Index
* GBP BOE Inflation Letter
* USD Consumer Price Index
* GBP Bank of England Minutes
* USD Fed Interest Rate Decision
* USD FOMC Economic Projections
* USD Fed’s Monetary Policy Statement and press conference
* EUR Producer Price Index
* CHF SNB Interest Rate Decision
* BOE Bank of England Minutes
* CAD Bank of Canada Consumer Price Index

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell