EUR/USD: forecast for July 13-19
EUR/USD slipped 1.0900 on the past week. However, on Thursday the Greek Prime Minister Tsipras proposed a bag of reforms to the European leaders, switching the market sentiment towards buying the European currency. As a result, at the end of the week EUR/USD recovered back above 1.1100.
European leaders will be discussing the Greek proposal over the weekend. If they find it not sufficient, on Monday euro could come under resumed bearish pressure, targeting 1.0910, 1.0820 and then lower. If a compromise is found by Monday, the pair may recover towards the 1.1400 mark. We don’t see any fundamental reasons for a move higher.
Apart from the Greek news, pay attention to the ZEW economic sentiment index on Monday. Thursday is another eventful day of the coming week: ECB meeting, Mario Draghi’s press-conference and final June CPI are on the schedule.
Chart. EUR/USD Daily