FBS INDONESIA
EUR/USD: doomed to declineDuring the past week there were several weak releases in the euro area: the industrial production declined, while GDP growth in the second quarter turned out to be zero. At the same time, deep down everyone was probably expecting something like this, so the market’s reaction was modest. At the same time, with the course of time bad data will do their job: the difference in condition of the US and the euro zone’s economies is now evident, and the pressure on the ECB to increase monetary stimulus will rise – negative factor for EUR.
