EUR/USD Forecast: Will The Price Increase To 1.19000?
We see that a stable dollar affects the EUR/USD pair on the four-hour time frame and that we are leaning towards the next lower support at 1.17000. We are still testing the zone around 1.18000. Moreover, it is important to monitor whether the couple will find support or kneel down and slide down. If the EUR/USD pair finds solid support, then we can expect a slight price increase to 1.19000, approaching the moving average of the MA200.
The European Commission has upgraded economic projections, citing improved health and consequent mitigation of virus control measures.
According to the latest summer provisional forecast, economic production should return to pre-pandemic levels in the last quarter of 2021.
The eurozone economy will grow 4.8 percent in 2021 instead of the 4.3 percent predicted earlier. Likewise, the outlook for 2022 has increased to 4.5 percent from 4.4 percent.
The inflation forecast for this and next year became revised upwards. Inflation projections show a rise this year, driven by transitional factors.
Inflation in the EU
In the eurozone, inflation is forecast at an average of 1.9 percent in 2021. This is compared to the 1.7 percent estimated spring forecast. Similarly, the inflation forecast for next year is slightly increased to 1.4 percent from 1.3 percent. It also increases the forecast for German GDP growth to 3.6% in 2021 from 3.4% to 4.6% in 2022 from 4.1% seen in May.
French GDP projections show growth to 6.0% in 2021 from 5.7%, confirming an estimated 4.2% growth in 2022.
The forecast for the growth of Italian GDP to 5.0% in 2021 from 4.2% previously estimated reduces the forecasts for 2022 growth to 4.2% from 4.4%.
The major revision is largely due to the reopening of the EU bloc’s national economies in the second quarter. This benefited the services sector and will boost tourism in the EU.
We need to redouble our vaccination efforts, building on the impressive progress made in recent months: the expansion of the Delta version is a stark reminder that we are not yet out of the shadow of the pandemic.
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