After four consecutive days gains, the EUR/USD pairing gave up almost all of its positive momentum on Friday after the US employment data posted better-than-expected figures. Ultimately, this increased the possibility of an interest rate hike from the US later this year.
In the meantime, economic data remained positive as Germany’s factory orders grew in June, exceeding expectations. In addition, Italian retail sales volumes grew by 0.8% month-on-month which was also above forecast.
It is a quieter week ahead with mainly second tier data set to hit the wires. Throughout the week we have the regional industrial production numbers from Germany, Italy and France. These are largely discounted as the market is more interested in the net figure for the region. Finally, we have the German and French inflation numbers which will give the market an early indication of how the eurozone is fairing.