Euro may spur buying on price bounce

Posted 16 May, 2018

The European currency became a victim of bullish factors combination, which drives the rate down to new 2018 bottom. Euro faced boosted pressure in mid-April after the greenback resumed recovery on all fronts seeing growing US state bonds and possible settlement of US-China trade dispute. Moreover, the European currency was depressed by softer expectations of stimulation shut down, which was related to the sluggish economy and slow inflation.

Along with above-mentioned factors, one more driver came from the political risks in Italy, considering increasing yield of Italian bonds that reached 2%. There are some rumors in the market that two main parties in Italy are about to ask the European Central Bank write off EUR 250 billion debt.

In this situation, the euro-to-US dollar rate showed conditions for euro sales on recovery attempts. 

In the near term, it is possible that price may move up after aggressive selloffs. On Wednesday, the European currency has broken 1.18 handle, falling to some 1.1780. As a result, the price can tend to 1.1720 in case of the confirmed break.

Previous forecast

17 May, 2018 14:32

← US dollar gain grounds further

US dollar bulls keep dominating in the markets. The greenback upturn is somewhat slower now, though the market environment generally shows that the US dollar may strengthen further. The European currency stands slightly above the bottoms posted yesterday but changes hand mainly in the red after having failed to take roots above 1.18 handle.

US dollar gain grounds further

Next forecast

16 May, 2018 14:18

Yen decline slower on May 16 →

On Wednesday, Japanese yen has stopped weakening vs the US dollar, though further changes remain possible. The yen-to-US dollar exchange rate stays were recorded at some 110.18. The American currency had strong positions even on weak April retail sales data in the USA released yesterday. For now, 10Y US state-bonds yield keeps rising...

Yen decline slower on May 16
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