HelenRush

EURUSD: too early to call a bottom

BITSTAMP:EURUSD   Euro / U.S. Dollar
The euro recovery is gaining traction on Monday after a steep decline late last week. EURUSD is extending gains above 1.13 but lacks momentum to challenge the 1.14 handle so far. The local demand growth is due to some positive developments in Italy . In particular, Italy's deputy prime minister Luigi Di Maio hinted at a possible budget deficit reduction.

As being reported, the country’s government is discussing reducing the budget deficit to 2.0% - 2.1% from the current goal set at 2.4%. The officials will likely meet later today to discuss the reduction. In this context, the single currency could receive a relief should the government really decide to make concessions to the EU.

In a wider picture however the euro’s attractiveness is still at risk against the backdrop of increasing signs of slowing growth in the region. This in turn may weaken the prospects of rising rates by the ECB in 2019. As such, it’s still too early to call a bottom and the downside risks still persist for the euro .

The upcoming ECB President Mario Draghi's testimony before the European Parliament Economic and Monetary Affairs Committee will be the key event for the currency today. Any signs of “dovishness” on the economic or political developments in the region could undermine the current recovery.

Technically, the pair needs to stay afloat above the 1.13 threshold which is the major pivotal point for EURUSD in the short term.


EN English (UK)
EN English
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out