The Euro is “in the red” again. Overview for 14.11.2018

The major currency pair continues falling after the Euro Area published some mixed numbers. 

EURUSD is trading downwards on Wednesday afternoon. The current quote for the instrument is 1.1290.

Earlier today, the Euro Area published several reports, which were rather mixed and didn’t provide the European currency with any support. The preliminary GDP report showed +0.2% q/q, the same expected, which is the worst reading over the last four years. 
One of the things that dragged the European economy down was the labor market, which got a lot weaker. This is not good for the GDP.

The Industrial Production in the Euro Area lost 0.3% m/m September after adding 1.1% m/m the month before and against the expected reading of -0.4% m/m. On YoY, the indicator expanded by 0.9%. The components of the report show that the major contribution to this decline was made by energy (-1.4%) and durable goods (-2.5%).

Everything else is still against the Euro, the same as before. Investors can’t get used to negative news and numbers: they are still worried by the Italian budget issue and the Brexit, which they don’t expect to go smoothly for all European countries.   

At the same time, investors are switching to the USD, which is supported by strong numbers and the US Federal Reserve, which continues absorbing the Dollar liquidity.