Where is the euro going?

By 11/02/2020News
Morning Stock News

Gold   1567,69
(-0,28%)

EURUSD   1,0911
( +0,01%)

DJIA   29331,50
(+0,31%)

OIL.WTI  50,19
(+1,13%)

DAX   13529,80
(+ 0,01%)

The European currency has been declining for 6 consecutive days. We haven’t seen such a thing for a long time. All last year, speculators and carry traders tried to push the EUR down, which was not very successful. The EUR/USD pair was most likely supported by informal Central Bank agreements. Their aim is the maximum stability of money markets.


EUR/USD chart of the day

EUR-USD chart of the day
But this cannot go on forever, especially given the extremely poor economic data coming out in the EU in the last 2 weeks. Against this background, the positive picture that the American economy is showing looks just frightening (for EURO). And the negative swap on the pair did not go anywhere.
The nearest support level at 1.0884 is the minimum for 2019. If it is broken through, the downside potential of the pair will increase.

INDICES

On Monday, stock indices showed mixed dynamics. The American market continued to grow, while most European and Asian indices showed a slight negative dynamics. In fact, stocks are only held on the huge infusions of money printed by the central banks. Otherwise, they would have collapsed a few days ago. It is likely that fresh data will be released during the day on Tuesday, indicating that the number of victims of the coronovirus has exceeded 1000 people. Psychologically, it would be a very strong blow to the investors’ shaky nerves.

OIL

Black gold keeps falling. Despite the fact that the Chinese New Year ended and the holidays were not extended. Yes, a lot of people went to work. But at the same time, a large number of enterprises, especially those related to logistics, continue to remain closed, which does not justify the hopes for increased consumption of petroleum products.

What is waiting for us today?

10.30 British GDP data for the 4th quarter of 2019.
10.30 UK industrial production level for December
16.00 Address by Federal Reserve Chief Powell to Congress


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