Euro Forecast for February 15-19, 2021

The euro started the trading week on a weak footing, falling against many of its most-traded counterparts. The EUR/USD currency pair has been trading about flat. What traders can expect from the EUR/USD pair and the euro in general during the rest of the trading week?
 
 
Let’s first look at eurozone macroeconomic reports scheduled for the week that may have an impact on the shared currency of 19 nations.
On Tuesday, several reports will be released, most notable of the will be a flash reading of eurozone gross domestic product and the ZEW economic sentiment. Eurozone GDP demonstrated huge swings last year due to the COVID-19 pandemic, tumbling by 12.1% in the second quarter and jumping by 12.6% in the third quarter. Analysts predicted that tomorrow’s report will show a mild decrease of 0.7% in the fourth quarter. As for the ZEW economic sentiment, it is expected to show a decline from 61.8 to 59.7 in Germany this month but an increase from 58.3 to 59.2 in the whole eurozone.
On Thursday, the European Central Bank will release its Monetary Policy Meeting Accounts, though analysts do not expect the minutes to show any significant revelations.
On Friday, Markit will release flash February manufacturing and services PMIs for Germany, France, and the whole eurozone. Several other reports will also come out at the end of the week, including the eurozone current account reported by the ECB.
Turning towards analysts’ forecasts, both Forex Crunch and DailyFX issued a neutral forecast for the euro and the EUR/USD pair in particular. Their reasoning was the fact that both the US dollar and the euro have their own negative factors dragging them down, and it is hard to predict which currency will suffer more. The greenback is under pressure from hopes that the US government will approve substantial fiscal stimulus. Meanwhile, the euro suffers from slow vaccine rollout, which endangers the eurozone’s economic recovery.
If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

Original from: www.earnforex.com