The Euro is climbing down. Overview for 31.03.2020
The major currency pair is speeding up its decline; investors like the “safe” USD again.
EURUSD is falling on Tuesday; the negative momentum continues. The current quote for the instrument is 1.0958.
The statistics published by the Euro Area today showed that inflation in the region was rather stressful and that’s might be just the beginning. The preliminary report on the CPI in March showed 0.7% y/y, which is much worse than 1.2% y/y the month before. The expected reading was 0.8% y/y. Such a significant decline in inflation indicates that the retail sector is suffering a significant stress without consumer demand.
The Core CPI showed 1.0% y/y in March after being 1.2% y/y in February.
Later in the evening, things may get much worse: the USA is scheduled to report on the Conference Board Consumer Confidence in March, which may go from 130.7 points to 115.1 points. If the actual reading matches market expectations or is even worse, the American currency may get stronger due to the increased demand for “safe haven” assets.
Basically, the key market driver remains the same, it’s the coronavirus pandemic, which means that risks are now at a discount.
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.
The material presented and the information contained herein is intended for our customers, and is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.