EUR/USD Daily Forecast – 22 February

Euro was initially pushed lower in the course of the Friday's session, after US CPI figures,  but found area around 1.1060 handle to be supportive enough, in order to rebound and break once again above 1.11 handle by the end of the session, all the way to day's high. As for Monday, we can expect some amount of support around 1.1050 handle, previous resistance and 1.10 level in extension, while area around 1.1180 level, should offer some amount of resistance as it was the case last week. Read more...

EUR/USD Weekly Forecast – 22 February – 26 February

Despite no major data releases in the course of the last week, euro pulled back initially in the week, but area below 1.11 handle continued to offer support during the week, as well with area near 1.12 handle offering resistance. Next week should be less volatile, at the very beginning, with volatility coming back with US Durable Goods figures. We believe that some amount of support can be expected around 1.10 handle, which was previously quite resistive, while we would consider selling the pair at the sign of weakness near 1.13 handle as this is major resistive area. Read more...

EUR/USD Daily Forecast – 22 February

On Friday, from Eurozone, only minor importance, German PPI data was published. In January 2016 the index of producer prices for industrial products fell by 2.4% compared with the corresponding month of the preceding year. The overall index disregarding energy decreased by 0.6% compared with January 2015. Compared with the preceding month the overall index fell by 0.7% in January 2016 (–0.5% in December 2015 and –0.2% in November 2015). Analysts were anticipating decrease by 0.3%.

In the US session CPI figures were released. The Consumer Price Index for All Urban Consumers was unchanged in January on a seasonally adjusted basis, beating forecasts on 0.1% decrease. Over the last 12 months, the all items index increased 1.4% before seasonal adjustment. An increase in the index for all items less food and energy offset a decline in the energy index to lead to the seasonally adjusted all items index being unchanged. The energy index fell 2.8 percent as all of its major component indexes declined. The index for all items less food and energy rose 0.3% in January. The increase was broad-based, with most of the major components rising, but increases in the indexes for shelter and medical care were the largest contributors. 

From Eurozone, on Monday, French and German Manufacturing and Services PMI figures will be released. No significant change from last month's numbers is expected. There will be no data releases in the US part of the session.

Figures to watch:

French Flash Manufacturing PMI/French Flash Services PMI (Monday 9:00)

German Flash Manufacturing PMI/German Flash Services PMI (Monday 9:30)

EUR/USD Weekly Forecast – 22 February – 26 February

Events that marked the week:

From Eurozone, on Tuesday, ZEW Economic Sentiment figures were released. The ZEW Indicator of Economic Sentiment for Germany has declined for the second consecutive time in February 2016. The index has decreased by 9.2 points compared to the previous month, now standing at 1.0 points (long-term average: 24.6 points). Analysts were anticipating decline to 0.1."The looming slowdown of the world economy and the uncertain consequences of the falling oil price put a strain on the ZEW Indicator of Economic Sentiment. In view of these developments, the concern over an increased credit default risk has already caused stock and bond prices for many banks in Europe, Japan and the US to slump," says Professor Sascha Steffen, head of the "International Finance and Financial Management" Research Department at ZEW. Read more...