Euro set to weaken further

7 November, 2017

Euro set to weaken further

The Euro is under further pressure today against its US counterpart after suffering heavy losses on Friday on the back of strong data from the US and the potential for further falls in the coming days and weeks remains strong.

The latest nonfarm payrolls figure from America hit the market on Friday at 261,000 while the unemployment rate hit 4.1 percent which continues the positive momentum of the employment market.

“The non-farm payrolls report for October provided further evidence that the US labour market remains healthy,” says Lee Hardman, a currency analyst at MUFG.  

“Healthy employment growth is resulting in the labour market continuing to tighten as evident by the drop in the unemployment rate to a new cyclical low of just 4.1%.” he added.

The figure being passed around the market at the moment for the Euro/USD is around $1.13 as we head towards the end of the year, which was backed up by last week’s inflation figures from the Eurozone which once again fell short of expectations.

This will leave the ECB no choice but to leave rates on hold for the foreseeable future and unable to cut back on their bond buying program.

On the other hand, the market has priced in a more than 90 percent rate hike from the US Federal Reserve next month which is only going to add the attractiveness of the US dollar and leaving traders wondering where is the value in holding the Euro.

Source link  
Pound to remain supported

The British pound is trading higher for a 4th straight day against the greenback after another round of disappointing data from the US cast doubt...

Gold to benefit on fewer rate hikes

Gold has pushed higher in today’s trading session after the release of key data from the US and a shock move by US President Donald Trump to dismiss...

Gold to benefit on trade wars

The gold price has had a rough time over the last 2 weeks tumbling around $40 dollars but it seems as if the precious metal has found a new friend...

Pound may be about to plunge

The British pound has fallen heavily over the last 3 trading sessions against its US counterpart as investors pile into the greenback in...

Pound may surge on 2nd referendum

The British pound may soon hit $1.40 as expectations grow that a 2nd referendum will be held on whether Britain will remain in the European Union with the chances...

Gold may be a good bet in the new year

The gold price jumped to a 3-week high in early trading today, taking its gains to over $40 in less than 2 weeks and with the market expected to remain...

Tax reform not to benefit US dollar

The US dollar has remained under pressure in the last 3 trading sessions which is strange inlight of Donald Trumps tax plan which is certain...

Tough times ahead for pound

The British pound is trading higher today after as the EU and the UK move onto the 2nd round of talks surrounding Brexit which promises...

Gold awaits US employment data

The gold price is under further pressure today after being hammered over the last week and as we mentioned yesterday, any sustained break down...