FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
FxPro information and reviews
FxPro
88%
OctaFX information and reviews
OctaFX
86%

Eurozone GDP contracted by 5.1% in 2020


3 February 2021

The Eurozone GDP growth rate change report for the fourth quarter of 2020 was released on Tuesday. As a consequence, we already know the final result for the whole previous year. The actual data was better than the forecast, but do not rush to rejoice for Europe and actively buy the euro. At the end of 2020, the Eurozone's GDP contracted by 5.1% with a projected decrease of 5.4%, while the US GDP contracted by only 2.5% year on year. Comparing these two economies, it becomes clear how much worse the situation in Europe is.

As a result, there is a risk of a rather strong weakening of the EUR in the medium term. Moreover, the incoming macroeconomic statistics for the first month of this year only indicate a further slowdown in the economy of the currency block, thereby increasing the demand for the US dollar and contributing to the weakening of the EUR/USD currency pair. Please note that sellers are already trying to break the trend line and change the overall dynamics of the pair's movement.

Shifting to the oil market, I will note the update of the annual highs. The price of American WTI crude oil broke above $54.5 per barrel – it was at this level that the maximum of February 2020 was set. Support for oil quotes is provided by the decision of Saudi Arabia to reduce oil production by 1 million barrels per day, which came into force on February 1. Also, the growth of the stock market, which started the current week quite well, contributes to an increase in demand for black gold.

The local target for buyers is $59.5 per barrel, which is the next strong technical resistance level. The mentioned target will be achieved only on condition of further stimulation of American economy and strict fulfillment of oil production quotas by all OPEC+ members.

Concluding today's review, I would like to mention the forthcoming publication of business activity indices for European countries as well as ISM composite index for the USA. Let me remind you that Europe will get the final data, so only a significant deviation from previous values can have a noticeable impact on EUR. While the US report release might be accompanied by a spike in USD trading volatility.

#source

Share:


Related

The EUR/USD Price Prediction 2022. The Bulls or the Bears, Who Will Prevail?
The EUR/USD Price Prediction 2022. The Bulls or the Bears, Who Will Prevail?

Euro/US Dollar (EUR/USD), for which we will provide the price forecast for the year 2022, is the most actively traded currency pair on the foreign exchange market, also known as Forex or FX...

2 Dec 2021

The greenback remains calm
The greenback remains calm

EURUSD is rather calm on Thursday; the pair is waiting for the news. The major currency pair reached stability while waiting for the news. The current quote...

2 Dec 2021

EURUSD is "seasick"
EURUSD is "seasick"

EURUSD will have to consider an earlier reduction of the US QE programme. The major currency pair reached stability on Wednesday after "rolling in rough weather" the day...

1 Dec 2021

The demand in the greenback is increasing
The demand in the greenback is increasing

After making a short pause on Friday, EURUSD is falling again. The major currency pair is under pressure again after a short break. The current quote for the instrument...

29 Nov 2021

The Euro's oversold is a sign for more volatility to come
The Euro's oversold is a sign for more volatility to come

The Euro fell against the dollar to 1.1200, a new 16-month low, having lost more than 4% in the last four weeks. The downward trend in the single currency accelerated...

26 Nov 2021

EURUSD is knocked out again
EURUSD is knocked out again

After testing another “bottom”, the major currency pair is consolidating. EURUSD continued falling and tested another low yesterday; right now, it is consolidating....

25 Nov 2021


HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
AvaTrade information and reviews
AvaTrade
76%
LegacyFX information and reviews
LegacyFX
75%
FP Markets information and reviews
FP Markets
72%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.