EUR showed a decline against USD

17 September, 2019


EUR showed a decline against USD on Monday, retreating from its local highs of August 27 updated at the end of last week. The pressure on the instrument was provided by weak data from China, as well as by a number of statements by representatives of the ECB that noted the low growth rates of the European economy. Retail sales in China in August showed a slowdown from 7.6% to 7.5% YoY with a forecast of +7.9% YoY. Over the same period, Industrial Production slowed down from +4.8% YoY to +4.4% YoY, which also turned out to be worse than the forecast of +5.2% YoY. During today's Asian session, the instrument shows corrective growth, awaiting the publication of European statistics on business sentiment. However, analysts do not foresee a confident growth of the pair, therefore, only weak USD exchange rate could perhaps help the “bulls”.


GBP fell against USD at the beginning of the current trading week, reacting to several factors. Investors are still concerned about the slow pace of development around Brexit. There is not much time left until the deadline, and Boris Johnson is trying more to enlist the support of his supporters, rather than looking for ways to get the agreement approved in parliament. Johnson’s meeting with European Commission President Jean-Claude Juncker was unsuccessful. Moreover, the British Prime Minister reiterated his intention not to request a postponement of Brexit. It is likely that Johnson will try to ignore the parliament’s ban on the hard Brexit, but this threatens to exacerbate the political crisis in the UK, which will negatively affect the country’s economy if it does leave the EU at the end of October.


AUD showed ambiguous trading dynamics against USD on Monday, falling under pressure from weak macroeconomic statistics from China. In addition, investors are actively reacting to the aggravation of the situation in the Middle East and the increased threat of a US war with Iran. Last weekend, the oil refining facilities of Saudi Arabia were attacked, which caused a rapid increase in oil prices. The US was quick to blame Tehran for the attacks, and Donald Trump announced his readiness to retaliate after confirming the suspicions of Saudi Arabia. During today’s Asian session, the pair shows a downward trend. Investors are focused on statistics from Australia and published minutes of the RBA meeting of September 3, at which the rate was maintained unchanged at 1.00%. Australian Housing Price Index in Q2 2019 showed a decline of 0.7% QoQ after a decrease of 3.0% QoQ last month. Analysts had expected a decrease of 1.0% QoQ.


USD showed strong growth against JPY on Monday. However, it is worth noting that the instrument opened with a significant gap down, so by the end of the trading session USD only managed to recoup its losses at the opening. Meanwhile, JPY is supported by the aggravation of the situation in the Middle East after a series of attacks on oil refineries in Saudi Arabia. The United States accused Iran of assault and declared readiness to retaliate if Saudi Arabia confirms Tehran’s responsibility for the attack. During today's Asian session, the pair is trading in both directions. Investors expect the situation in the Middle East to develop and are awaiting the publication of macroeconomic statistics from the USA on retail sales and industrial production in August.


Oil prices showed ambiguous dynamics on Monday, after the market opened with record growth of more than 10% amid a worsening situation in the Middle East. At the weekend, oil refineries in Saudi Arabia were attacked by drones, which led to a reduction in Saudi production by half. The United States accused Iran of assault, saying it was ready to strike back if Saudi Arabia confirms Washington’s suspicions. In addition, Donald Trump approved the use of petroleum products from the US strategic reserve to help stabilize supply and demand in the market. On Tuesday, investors focus on the American Petroleum Institute Crude Oil Stock report for the week as of September 13, which last time showed a decrease in reserves of 7.2 million barrels. There is little hope that today’s report will be positive.

EUR showed correctional growth12 Nov, 2019  

The uptrend appeared due to technical factors, since no interesting macroeconomic statistics from the US or Europe were released yesterday...

Oil prices showed ambiguous dynamics11 Nov, 2019  

Oil prices showed ambiguous dynamics on Friday, reacting to the publication of conflicting information on the process of trade negotiations between the US and China...

EUR showed a decline against USD8 Nov, 2019  

Pressure on the euro was exerted by moderate growth in the US currency amid improved prospects for a trade agreement between the...

EUR showed steady decline against USD6 Nov, 2019  

EUR showed a steady decline against USD on Tuesday, updating local lows of October 16. The development of negative dynamics in the instrument...

Oil prices returned to decline29 Oct, 2019  

Oil prices returned to decline on Monday, retreating from local highs after a moderate upward rally last week. Investors are optimistic about progress...

European currency rose significantly17 Oct, 2019  

The European currency rose significantly against the US dollar on Wednesday, updating local highs of September 16. EUR was supported by...

The euro showed moderate growth25 Sep, 2019  

The British pound showed growth against the US dollar yesterday, recovering from new local lows of September 17. The growth of the instrument...

Euro showed steady growth5 Sep, 2019  

The European currency showed steady growth against the US currency on Wednesday, continuing the development of a weak bullish impulse...