08.02.2019 02:38 PM
EUR / USD: pessimism around the euro rolls over

This image is no longer relevant

Today, the single European currency continues to develop a "bearish" momentum, declining against the dollar for the past five trading days in a row.

This image is no longer relevant

Another portion of negative news for the euro on the eve came from the European Commission, which worsened the forecast for 2019 for GDP growth in the currency bloc from 1.9% to 1.3%. In particular, the estimate for the German economy was lowered by 0.7%, from 1.8% to 1.1%.

In addition, yesterday the ECB reiterated that the risks associated with growth prospects in the eurozone shifted to a downward trend.

"The incoming data turned out to be weaker than expected, reflecting a decrease in the contribution of external demand and some country and industry factors," representatives of the financial institution said.

Rumors about the lack of progress in trade negotiations between the US and the Middle Kingdom have added fuel to the fire, which was another blow to the euro.

According to Larry Kudlow, chief economic adviser to the American president, Washington, and Beijing are still far from concluding a deal. It also appeared that Donald Trump does not intend to meet with Chinese leader Xi Jinping before March 1.

It should be noted that it was trading wars that reduced external demand and served as one of the reasons for the slowdown in European GDP last year.

Therefore, it is not surprising that in the current situation, the euro continues to suffer losses, and the dollar feels great.

Despite the fact that the Fed probably paused the process of raising interest rates this year, greenbacks still seem more attractive to traders than other currencies.

"Paradoxically, but a fact: the dollar is growing even in the face of falling yields on US bonds. If the market again starts laying the price increase later this year, and the yield on 10-year-old treasuries goes up, it will support another wave of the dollar rally," said Win Thin, senior currency strategist at Brown Brothers Harriman.

If we proceed from the fact that the prospects for the European economy are really so bad, and trade wars will resume with a new force, then the EUR / USD route to the south is assured.

Viktor Isakov,
Pakar analisis InstaForex
© 2007-2023
  • Grand Choice
    Contest by
    InstaForex always strives to help you
    fulfill your biggest dreams.
  • Chancy Deposit
    Deposit akaun anda sebanyak $3,000 dan dapatkan $9000 lebih lagi!
    Dalam Mei kami membuat cabutan bertuah $9000 dalam Kempen Chancy Deposit!
    Dapatkan peluang untuk menang dengan membuat deposit $ 3000 ke dalam akaun dagangan. Setelah memenuhi syarat ini, anda menjadi peserta kempen.
  • Trade Wise, Win Device
    Daftar untuk peraduan dan tambah dana akaun anda dengan sekurang-kurangnya AS$ 500 untuk layak memenangi peranti mudah alih.
  • Bonus 100%
    Peluang istimewa anda untuk menerima bonus 100% pada deposit anda
  • Bonus 55%
    Dapatkan bonus 55% pada setiap deposit anda
  • Bonus 30%
    Dapatkan bonus 30% setiap kali anda membuat penambahan dana akaun anda

Artikel yang dicadangkan

Tidak boleh bertanya sekarang?
Tanya soalan anda di Ruangan bersembang.
Panggilan semula Widget