You are here: Home > articles > Forex > The euro is strengthening, but there is little cause for optimism.
The euro is strengthening, but there is little cause for optimism.
January 11, 2019 2:24 pmVideo
Latest News
- Analysis of EUR/USD pair on May 24, 2024 May 24, 2024
- Analysis of GBP/USD pair on May 24th. Another British report showed weakness, but who cares? May 24, 2024
- USD/JPY: Simple trading tips for novice traders on May 24th (US session) May 24, 2024
- GBP/USD: Simple trading tips for novice traders on May 24th (US session) May 24, 2024
- EUR/USD: Simple trading tips for novice traders for May 24th (US session) May 24, 2024
- GBP/USD: trading plan for the US session on May 24th (analysis of morning deals). Sellers missed 1.2700 May 24, 2024
- EUR/USD: trading plan for the US session on May 24th (analysis of morning deals). The euro is not going to give up May 24, 2024
- EUR/USD. May 24th. The bears are starting to go on the offensive May 24, 2024
- Forecast of GBP/USD pair on May 24, 2024 May 24, 2024
- Trading Signals for EUR/USD for May 24-28, 2024: sell below 1.0864 (200 EMA – 21 SMA) May 24, 2024
- Trading Signals for GOLD (XAU/USD) for May 24-28, 2024: buy above $2,333 (200 EMA – oversold) May 24, 2024
- Weekly Forex Outlook: 24/05/2024 – US PCE inflation and Eurozone CPI data enter the spotlight May 24, 2024
- Technical Analysis – Is the pause in NGAS a warning signal? May 24, 2024
- Technical Analysis – USDCAD eases slightly after bullish rally May 24, 2024
- Week Ahead – US PCE inflation and Eurozone CPI data enter the spotlight May 24, 2024
- Technical Analysis – GBPJPY continues its journey north May 24, 2024
- Video market update for May 24, 2024 May 24, 2024
- Forex forecast 05/24/2024: EUR/USD, GBP/USD, USD/CAD, Gold and Bitcoin from Sebastian Seliga May 24, 2024
- USD/JPY: trading tips for beginners for European session on May 24 May 24, 2024
- GBP/USD: trading tips for beginners for European session on May 24 May 24, 2024
The euro ends the week on a positive note amid widespread depreciation of the dollar after cautious signals from the US Federal Reserve System.
In the past three months, the single European currency has failed to get out of the range of $ 1.12- $ 1.15 primarily because of fears that the ECB will not dare to put an end to monetary stimuli in the foreseeable future. However, the pigeon tone of the Fed’s protocol, released this week, caused a massive sell-off of the dollar, opening the euro to a maximum of $ 1.1580 and causing a 100-day moving average to break for the first time in three months.
Meanwhile, according to analysts, the growth potential of the euro is limited.
“At present, the single European currency is strengthening mainly due to the weakening of the dollar’s position. The risk of taking profits in the $ 1.1620 area remains,” said Chris Turner, ING’s chief currency strategist in London.
“A weak macroeconomic forecast by the ECB is unlikely to allow the Old World to lure significant amounts of capital from American markets,” the expert added.
“Despite the current rally, the euro remains under pressure due to depressing European statistics, especially from France and Germany. In addition, investors expect the ECB to continue to pursue a “soft” policy this year, which is likely to limit the upward potential of the European currency,” he said.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: