The euro is being actively sold

May 19, 2015

In the last two trading days the main currency pair lost almost 3% of weight, so it is no longer a technical correction and it is gaining momentum.

The euro weakened considerably. Yesterday the decrease in the main currency pair was definitely a technical correction, but the sale this morning is worrying.

This morning the sale was increased by the speech of the representative of the European Central Bank, Mr. Ker. He noted that the ECB may increase the volume of the QE program before the summer "due to seasonal factors." Now the regulator is spending a fixed sum to buy back bonds - 60 billion euro per month. After the comments of Mr. Ker there is an impression that the ECB can increase efforts in this direction.

The reaction in the main currency was instantaneous. Even the theoretical extension of the QE program for the euro is a strong factor of pressure. Sales on a similar emotional basis can lead the euro/dollar to 1.1050 in the near future.

It turns out that the previous growth in the euro/dollar was mostly "empty" and not well founded. I have already said that the Euro becomes more expensive "by contradiction": not because it is strong, but because the dollar was weak.
 
RoboForex Analytical Department

Publication source
RoboForex information  RoboForex reviews

December 5, 2016
November services data will headline a thin economic slate
The ECB is the focus this week. The Bank not only has to deal with the immediate fallout from the Italian referendum, but most importantly, it will be deciding on the future of the QE program, which currently runs out in March...
December 5, 2016
EUR fell on a negative referendum outcome
Italians voted NO to constitutional changes proposed by Italian Prime Minister Matteo Renzi. After negative outcome of the referendum, Renzi decided to quit in the early hours of Monday...
December 5, 2016
Italy continues to dominate headlines as Euro hits 20-month low
Political risk is showing no signs of escaping the headlines after the European Union was plagued into fresh political turmoil overnight following confirmation that Italian Prime Minister Matteo Renzi suffered a humiliating defeat in the referendum over constitutional reforms...

XTB Rating
Z.com Trade Rating
Orbex Rating
OctaFX Rating
HotForex Rating
Vantage FX Rating

OptionsXO Rating
24option Rating
OptionFair Rating
IQ Option Rating
Banc De Binary Rating
OptionBit Rating