EUR/USD: Despite Friday’s correction, posts best week since February
- EUR/SUD corrected lower on Friday but still managed to have the best week in months.
- Busy week ahead: US CPI, ECB, FOMC, Trump, trade war and more.
The EUR/USD pair dropped on Friday after rising during the previous four trading days. Still, the Euro was about to finish the week sharply higher against the US Dollar supported by expectations about changes in the purchase program from the European Central Bank.
Comments about the finalization of the QE program from the ECB, offset the story around Italian bond yields and supported the euro. EUR/SUD extended the recovery from the 11-month low it reached late in May at 1.1509.
The recovery found resistance on Thursday at 1.1840 and pulled back on Friday. It retreated to 1.1725 and it was about to end the week hovering around 1.1760/70, up 110 pips from a week ago.
Busy days ahead
The economic calendar shows a key week ahead. “On Monday, the outcome of the G7 meeting will be digested ahead of the highly expected meeting between US President Donald Trump and North Korean peer Kim-Jong Un in Singapore on Tuesday”, said analysts at Danske Bank.
On Tuesday, US CPI data is due and on Wednesday the Fed will announce its decision. A rate hike is widely expected. Then attention will turn to the ECB meeting on Thursday and analysts will look for signals regarding the QE program.
“The US-China trade war will be on full display on