The Euro Area economy expanded by 0.3% in Q2, according to the latest Eurostat data, slightly more than the 0.2% market forecast. Last month’s data was revised down to -0.1% from 0%, balancing the two quarters out.
The Euro was unmoved by today’s data and with the holiday season now in full flow, price action may be limited in the coming days. EUR/USD has bounced back above 1.1000 after having made a 1.0944 low on Friday and the pair will likely be driven by the dollar in the days ahead. The main US economic release this week will be Friday’s Labor Report (NFP). The headline figure is expected at 200k while average earnings are expected to turn lower.
EUR/USD DAILY PRICE CHART – JULY 31, 2023
EUR/USD BEARISH
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51% of clients are net short.
| CHANGE IN | LONGS | SHORTS | OI |
| DAILY | 10% | 5% | 7% |
| WEEKLY | 34% | -24% | -3% |