EUR dropped to its monthly lows. Overview for 15.08.2023
The most traded currency pair on Tuesday is stabilising after a stress yesterday. The current EURUSD quote is 1.0913.
USD reached its monthly highs because investors were looking for a safe haven. The market was avoiding risks because of fears about the future of the Chinese economy. Moreover, investors were anxious about what the Bank of Japan would do after the JPY dropped to its lows since last November.
So, the market is buying USD to decrease risks.
News from China became the focus of attention: the largest private developer Country Garden was trying to postpone payments on private bonds. This happens for the first time and makes market participants extremely nervous because such events might be signs of stress in the construction sector.
The Chinese real estate sector is approaching a crisis as it is, and the news from Country Garden does not make the situation more optimistic.
Today the market will be focused on the US retail sales statistics. In July, the index is supposed to have grown by 0.4% m/m upon rising by 0.2% m/m in June. The growth of retail sales is a pro-inflationary sign. If the Federal Reserve decides to continue raising the interest rate, USD will get even stronger.
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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