Euro selling view! ~ Euro strategy for the week of October 29

◎This Week's Strategy and Outlook

・Bearish View on the Euro

・Holding a Short Position on EUR/USD

This week's euro will reach a point of focus. Although circled in white,is a potential new low on the daily chart!?We are at a point where, from a fundamental standpoint, the bias is bearish, but if it cannot make a new low and instead rebounds, it may return to a range again.

EUR/USD Daily Chart

◎ Points to Watch for the Euro

・Deadline for Italy's revised budget proposal approaching next week

・Economic indicators from various countries

We are watching the two points above, and even if good results come out, I won’t touch them, but if bad results come out, I intend to sell the euro.

Italy, which was downgraded last weekappears to be affected by the budget proposal. As for that budget proposal, it has not yet been revised after being rejected by the European Commission. With the revision deadline looming next week, we are watching to see whether it will not be revised, or whether a revised proposal will be issued.

Also,This week, economic indicators from various European countries will be released. Indicators such as the HICP (price index), GDP, and PMI (a leading indicator of the economy) will be announced. Recent German data have been somewhat weak, which is a concern. This week, I plan to focus on the results of economic indicators from Italy, France, Germany, and Spain.

◎ Euro-Related Event Schedule

Tue, 10/30

15:30 France GDP
17:00 Spain HICP
18:00 Italy GDP
19:00 Euro Area GDP
22:00 Germany HICP

Wed, 10/31

16:45 France HICP
17:00 Spain GDP
18:00 ECB President Draghi-like commentary
18:30 BIS/Italy Central Bank Governor Speech
19:00 Italy HICP
19:00 Euro Area HICP

Thu, 11/1

16:30 Sweden Manufacturing PMI

Fri, 11/2

17:15 Spain Manufacturing PMI
17:45 Italy Manufacturing PMI
17:50 France Manufacturing PMI
17:55 Germany Manufacturing PMI