In my opinion, we are going to see weakness in this pair early during the week as we re-test the 1.12000 psychological level. US Housing starts and building permits figures on Tuesday may provide catalyst if figures come in better than expected.
Of course there is an ECB rate decision on Thursday. Consensus is that rates will remain unchanged with the usual dovish comments coming from the central bank.
I think the US data toward the end of the week , initial jobless claims and existing home sales will have greater potential for moving the market.
Good US data will increase the already hawkish comments coming from the fed, increasing the likelihood of a rate hike before years end, which could push the pair even lower towards the 1.11000 level.
Of course there is an ECB rate decision on Thursday. Consensus is that rates will remain unchanged with the usual dovish comments coming from the central bank.
I think the US data toward the end of the week , initial jobless claims and existing home sales will have greater potential for moving the market.
Good US data will increase the already hawkish comments coming from the fed, increasing the likelihood of a rate hike before years end, which could push the pair even lower towards the 1.11000 level.