EURUSD is getting lower, more deeper as European Union and Brexit problematic, Europe is on the valley of recession and the UK received a short unsatisfying extension to Article 50. Finally As a result, consolidations turned into breakouts as latest economic data and central-bank policy gave some investors a clearer signal of where the Safe haven currency US dollar, euro and other currencies should head next.
Safe haven currency The greenback ended the week sharply lower against the Japanese yen but higher against the euro, Canadian and Australian dollars. Safe haven currency US Dollar depression after the Federal Reserve meeting, it looked like it could have been a week where all of the major currencies would be pushed higher by a depreciating US dollar. A good shape for EUR currency
But still, safe haven currency US Dollar could be bouncing back, However a less-hawkish Fed can only hurt the dollar so much when the bigger problem is weaker global growth. Looking ahead, we expect that many of the new trends established last week will continue because while the economic calendar is busy
As reported from Investing com, worst-performing currency was the euro, which tumbled lower following terrible PMI data. EUR/USD broke 1.13 in minutes after the PMIs fell to multi-year lows, could be raising concerns that Europe would be in the recession. As reported from Berlin, Germany is hurting the most with the manufacturing sector contracting for the third month in a row at its fastest pace since August 2012.
Another bad news, This drove Germany composite PMI index to its lowest since June 2013. With France also reporting slower manufacturing- and service-sector activity, the EZ composite index dropped to 51.3 from 51.9 in March.
European Investors and others offshore investors in Europe were worried about growth after the ECB cut its forecasts earlier this month and Friday's PMI reports show how deep those concerns run. Adding salt to the wound are the possibility of European auto tariffs – President Trump said on Wednesday that the EU has been very tough on the US for many years and "we're looking at something to combat at."
Meanwhile from bonds market, German 10-year bond yields turned negative for the first time since October 2016, causing EUR/USD to drop to an intraday low of 1.1288. While the Fed still dovish, no longer plans to raise interest rates this year, the ECB won't raise interest rates until the Fed makes another move or if there is any significant difference situation, Technically and fundamentally, 1.10 is still a viable target for the currency as it comfortably clears the 20-, 50- and 100-day SMAs. But please note that the rebound will be put the investors pay attention
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