EUR/USD Forecast Feb. 1-5 – Eurozone GDP, PMIs Next

EUR/USD had an uneventful week, registering slight losses. There are eight events on the calendar, including eurozone GPD and PMIs. Here is an outlook at the highlights and an updated technical analysis for EUR/USD.

There was a dump of German data last week. Ifo Business Climate slowed to 90.1 in January, down from 92.1. This was the index’s lowest level since June. Consumer confidence also fell, as GfK Consumer Climate dropped from -7.3 to -15.6 in January, its lowest level since May. CPI jumped to 0.8% for January, up from 0.5% and an 11-month high. German GDP in Q4 slowed to just 0.1%, down from 8.2%. France’s GDP for Q4 came in at -1.3%, its fourth decline in five quarters.

In the US, CB Consumer Confidence rose to 89.3, up from 87.1 beforehand. Durable Goods Orders continued to slip, falling to 0.2% in December. This was well short of the forecast of 1.0%. The Federal Reserve policy meeting reiterated a dovish stance and Fed Chair Powell poured cold water on speculation that the Fed would taper its QE program in the near future. Advance GDP for Q1 posted a respectable gain of 4.0%, close to the estimate of 4.2%.                                                                                                                              .

EUR/USD daily chart with support and resistance lines on it. Click to enlarge:

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