The EURUSD started to rally after the ECB announced its stimulus package. While opinions on the success of such measures differ, for now forex traders have decided to trust the monetary policy and pushed this currency pair off of its lows. Inflationary pressures remains absent as evident in the latest data released this morning out of Germany and Spain. Have central banks ran out of ammunition and ideas? Studies have indicated that QE doesn’t have a positive impact on the economy and lead to a reduction in lending. Will the EURUSD rally extend? Today’s fundamental analysis will take a look at the upside potential in this currency pair and weigh the downside risk.

Forex traders will get key US data before heading into the weekend which is expected to impact the US Dollar. With the US Fed’s expectation to deliver another interest rate cut next week, the Import and Export Price Index will play a greater role. Most attention will be paid to retail sales data which is expected to show an increase, but at a far smaller rate than in July. Consumer confidence will also be released as the last big economic data point for the trading week. How do consumers in the US feel and how will this impact spending moving forward? Is it time to buy the EURUSD? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month in profits!