Euro lifted from 3-month lows

0
158

Euro, trade talk and eurozone trending point

  • Risk-appetite has shifted remarkably on rekindled hope surrounding trade talk, as US dollar started to lose ground against a basket of global currencies including majors such as euro
  • Investors starts to bet to risky assets on fresh hope of a possible trade truce extension of 60 days and Federal Reserve would unlikely to rise hike this year, firing up the market and lifting euro back above 1.13
  • Euro are trading above its initial resistance level at $1.1310, although gains are curbed by weaker eurozone forecast

Market starts quieter, euro resurfaced above 1.13 region

The currency market has started the week quietly, as US market remained close on Monday (the 18thof February), although a breakthrough in the US china trade talk had fired up the optimism and contributed to euro rally, alongside riskier assets like Australian dollar.

Amid growing weakness in the eurozone economy and a gauge of disappointing data which were pushing the eurozone economy closer to a recession, the euro gains remained limited. However, over the news of Federal Reserve’s patience in the hawkish rate hiking cycle, currencies have not been behaving as it should have over gloomier outlook on global growth a sluggish eurozone economy as well as Brexit.

But after dropping to a three-month low on Friday (the 15thof February), the euro has recovered slightly, largely helped by the trade talk optimism reported by both parties, meanwhile the world’s most liquid currency, the American Dollar dwindled 0.2 percent so far to 96.68 in today’s quieter Asia Pacific and European trading session.

- Advertisement -

Apart from the trade talk optimism, market had been chattering about ECB stimulus into the Eurozone economy, mostly in the form of a low-tax debt, which would likely help euro to lift above 1.14 region in a near-term outlook.

EUR/USD daily price chart

EUR/USD daily price chart

Bottom Line

In the wake of ECB’s attempt to inject money into the eurozone economy ahead of a possible recession risk, the euro is expected to be at the front foot during the course of this current week, however, whether the gorgeous currency could break above a tighter zone between 1.1220-1.1530, in which it had been trading since mid-October, is largely dependent upon the ECB stimulus and monetary policy decisions, scheduled to be released later this week.

Read more on Euro here

[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]

LEAVE A REPLY

Please enter your comment!
Please enter your name here