The downturn to be fairly shallow | 18 Agosto 2022

EURUSD trading plan:

Euro zone economic growth was slightly less robust in the second quarter than forecast but still strong, and employment rose again, revised data from the European statistics office showed. Eurostat said gross domestic product in the 19 countries using the euro rose 0.6% quarter-on-quarter in April-June for a 3.9% year-on-year rise. The office had previously estimated the quarterly growth at 0.7% and the year-on-year rise at 4.0%. But economists believe the second quarter growth might be the economy's last hurrah before ever-higher inflation and supply chain problems cause a mild recession over the course of the next 12 months. We expect the downturn to be fairly shallow and short-lived, with activity recovering by Q2 next year and short-time working schemes cushioning the blow, especially in Germany’s exposed manufacturing sector.

Investment idea: buy 1.0125 and take profit 1.0185.