Another Reason why the EUR Should Rise

Date October 20, 2010

There are many reasons for why the EUR/USD should continue to rise, the strongest of which has been the Federal Reserve’s plans to ease monetary policy. However, there is another reason why the uptrend in the EUR/USD has been so strong. The following chart shows the correlation between the German IFO Report (white line) and the EUR/USD (orange line). As you can see, the IFO report has been a reliable leading indicator for the price action in the EUR/USD with the white line frequently turning before the orange line.

This is relevant not only because the latest trend in IFO supports a further rise in the EUR/USD, but because the next German IFO report will be released on Friday and it could give us clues on where the EUR/USD is headed next.

Category Posted in 2010 eurusd forecast, 2010 eurusd forecasts, forex blog

3 Responses to “Another Reason why the EUR Should Rise”

  1. Walter said:

    October 21st, 2010 at 4:29 pm

    Another bad call!

  2. Walter said:

    October 22nd, 2010 at 9:44 pm

    Ah! today noticed some good opportunity/reason to get behind EURUSD.

  3. Serj said:

    October 23rd, 2010 at 4:01 am

    EUR will be rise untill FOMC meeting (02-03.11.2010)

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