The Euro is trading down 0. There has been little reaction to German industrial production unexpectedly falling by 1. The pair has broken some relevant levels this week, starting with the In the 4 hours chart, the pair has extended below its SMA, the first time below the indicator since November 13th, while the 20 SMA has gained bearish strength above the largest, now about to cross it.
In the mentioned chart, the Momentum indicator maintains its slope downward now at its lowest for December, while the RSI is neutral-to-bearish near oversold levels. From the current level, the pair has scope to fall down to the 1. We ask three important questions. The common currency remains confined to a tight intraday range against its American rival this Thursday, showing little life during Asian trading hours.
Greenback's strength remains intact, despite a possible US Government shutdown this weekend amid the federal spending having reached the debt ceiling. In the data front, the EU will release its final version of Q3 GDP today, expected unchanged from preliminary estimates, with quarterly growth up 0.
Challenger job cuts for November, and weekly unemployment claim figures. The Euro US Dollar can be seriously affected by news or the decisions taken by two main central banks:. Another of its tasks is the one of controlling the money supply. Mario Draghi, member of the Executive Board, is also the President of this organism. Fed has two main targets: The FOMC organizes 8 meetings in a year and reviews economic and financial conditions.
Also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. His declarations are an important source of volatility, especially for the Euro and the currencies traded against it. Draghi gives press conferences in the back of how the ECB observes the current European economy. His comments may determine positive or negative trends for the Euro in the short-term. She had already previously served as a Vice Chair from to This group also includes the following currency pairs: The popularity is due to the fact that it gathers two main economies: This is a widely traded currency pair where the Euro is the base currency and the US Dollar is the counter currency.
Normally, it is very quiet during the Asian session because economic data that affects the fundamentals of those currencies is released in either the European or U. Once traders in Europe get to their desks a flurry of activity hits the tape as they start filling customer orders and jockey for positions. At noon activity slows down as traders step out for lunch and then picks back up again as the U.
If there is important U. The pair is also called 'The Cable', reffering to the first Transatlantic cable that was crossing the Atlantic Ocean in order to connect Great Britain with the United States of America. The popularity of the Pound Dollar is due to the fact that represents two strong economies: British and American from United States of America.
The Cable is a widely observed and traded currency pair where the Pound is the base currency and the US Dollar is the counter currency. Japanese Yen has a low interest rate, normally used in carry trades, that's why is one of the most trades currencies worldwide.
The value of the pair tends to be affected when the two main central banks of each country, the Bank of Japan BoJ and the Federal Reserve Bank Fed , face serious interest rate differential. The dollar is vulnerable to the idea of a trade wars The dollar is vulnerable to the idea of China selling a big chunk of its dollar reserves The dollar has started its 15 year super cycle decline.
Draghi risks interest rates traveling much higher The risk of deflation has disappeared Flows out of the US and into Europe as a relative haven for US political uncertainty Sentiment surveys shows EUR exchange rate was no impediment to economy The capacity of Europe to build stronger economic and political relations with China, makes it appear as a relatively safe place to invest Rising European yields are the latest shiny thing that traders can see Many investment houses and journalists are talking up European equities and the euro as the counterpart to the unwind of the Trump trade Diminishing election risk in Europe The euro has increasingly become a funding currency borrowing in euros to buy higher yielding assets The euro ist appreciating well before rates will actually go up again in the Eurozone Eurozone is getting the same boost the US got from QE, just a few years later With higher Libor clients may well decide to no longer seek a U.
The Euro US Dollar can be seriously affected by news or the decisions taken by two main central banks: The Federal Reserve Bank Fed. Janet Yellen Janet L. Preferred brokers in your location.More...