The Euro dropped to its 28 months lows. Overview for 27.09.2019
The major currency pair is falling influenced by the bleak outlook for the European economy and political turmoil in the USA.
EURUSD remains weak on Friday. The current quote for the instrument is 1.0910.
US President Donald Trump impeachment remains the major topic for market players at the end of another trading week. This morning, they are discussing a whistleblower complaint to accuse Trump and his office in misuse of power. Trump himself warns investors that in case of his impeachment capital markets will slump big time. And he is absolutely right. In such cases, the USD is used as a “safe haven” asset; it always happens this way when investors are nervous.
The statistics from the USA published yesterday showed that the Pending Home Sales added 1.6% m/m in August after losing 2.5% m/m in July. It’s good, but one should understand that this is the way customers respond to the reduction of interest rates. Actually, this was exactly the goal of the US Federal Reserve monetary policy.
Bleak outlook relating to economic uncertainty due to the Brexit is against the European currency. There are no doubts that everything will be extremely complicated.
In the evening, one should pay attention to the Durable Goods Orders for August, which may drop by 1.1% m/m after adding 2.0% m/m the month before. The indicator itself is very volatile, but the components of the report might be very interesting.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
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