BMO: data to watch for EUR
BMO Capital points out that the main focus for euro this week will be on the preliminary July PMIs due on Thursday and the German IFO Business Climate Index due on Friday.
According to the analysts, if the French or German PMIs drift lower, bears will pull EUR/USD to $1.3450. Still BMO underlines that for the bears to succeed they need good data from the US. All in all, the specialists expect that EUR/USD will be sold this week on the rallies to $1.3550 as we’ve seen today ahead of the releases on Thursday and Friday.
US dollar, on the contrary, is supported ahead of the American inflation data due tomorrow. According to the survey conducted by Bloomberg, economists expect US consumer prices to have climbed at an annual rate of 2.1% in June matching May’s figure that was the most since October 2012. High inflation strengthens the cause for an earlier-than-expected rate increase in the US and is USD-positive.