The Euro is holding around the 1.11 level

28 August, 2019

The Euro is holding around the 1.11 level against the US Dollar, despite the announcement that Germany’s GDP contracted by 0.1 percent in Q2, suggesting that markets had already largely priced in the gloomy economic data ahead of the release. With Germany’s manufacturing and export sectors showing their vulnerabilities to external headwinds, largely due to heightened US-China trade tensions, it highlights the prospects of Europe’s economic engine falling into a recession.

Q2 GDP figures out of France and Italy over the coming days should give investors a better assessment over the broader state of the EU economy. Still, EURUSD is expected to continue its bias towards the downside, as long as the US-China trade conflict continues to take its toll on global demand, while Brexit risks and Italy’s political uncertainties also add to the negativity surrounding the bloc’s currency.

EURJPY set to break below 117 mark on risk aversion


EURJPY has broken past every support level on the way down since April, as the currency pair saw a relatively easy path towards the 117 level. The “flight-to-safety” mantra has resulted in substantial gains for the Japanese Yen against the Euro, with the palpable risk aversion in the markets implying that EURUSD is very likely to further explore its downside over the coming months.

Weakening Australian Dollar offers Euro respectability among G10 


Still, the Euro has seen better year-to-date fortunes against the Australian Dollar. EURAUD has gained about 0.9 percent year-to-date, in contrast to EURUSD’s drop of more than three percent and EURJPY’s 6.7 percent decline so far this year. Australia’s economic exposure to China is dampening AUD, allowing the Euro some measure of respectability among its G10 peers.


Source  
Is the Oil rally built on weak foundations?

The story defining Oil's explosive appreciation over the past two days revolves around escalating tensions in the Middle East. WTI Crude and Brent...

Oil to stay elevated over heightened geopolitical fears

2020 kicked off with a spike to Oil prices, as a sudden escalation in geopolitical concerns permeated market sentiment...

Pound climbs to 8-month high

GBPUSD is trading above the 1.32 mark, its highest level since March, as markets expect a Conservative victory in today's UK election.


Is this calm before tariff-deadline storm?

Market participants find themselves amid relatively calm waters, as investors count down the days to President Trump's December 15 tariff deadline...

Gold explodes higher on fresh risk aversion

Gold staged an incredibly rebound on Tuesday, jumping over 1% against the Dollar after U.S President Donald Trump said that a trade deal with...

Events to keep an eye on for week ahead

Investors kicked off the last month of the year in a positive mood. Stocks across Asian markets traded in the green on Monday with 10-year US Treasury...


Risk-off mood hovers over Asian markets

Risk-off mode continues to cast a cloud over Asian assets, as media reports pour cold water on hopes that a US-China trade deal can be sealed...

Pound boosted by Brexit party decision

Sterling exploded higher on Monday, gaining roughly 0.8% against the dollar after the Brexit party said it would not contest Conservative seats in the...

What to watch when Fed meets this week

After lowering interest rates twice in 2019, investors across all asset classes are awaiting the FOMC rate decision when it wraps up its two-day meeting...