Key mark for Euro passed

Europe

EURUSD

The important support for EURUSD at 1.05 was broken this week. This happened due to more optimistic than expected forecasts for economy and further course of interest rate’s hike. In September, markets and the Fed Reserve had something we may call consensus for expectations of two hikes in 2017, but in December more hawks appeared, and eventually they await for three hikes. This goes along with Trump’s promises to boost economy growth by means of taxes and public expenses. Continue reading

Euro declines without news

EURUSD

As before Federal Reserve’s announcement about interest rate, pair EURUSD slowly declines without news releases. The reason is the demand growth for risky assets that encourages borrowings in EUR which stands as a funding currency. Though, it’s important to realize that scope of Euro weakening is less than the two previous escalation impulses caused by ECB and FRS. To boost selling of common currency market participants, probably, willing to have more heavy reasons that will create bearish approach for euro. This is blocked by the confidence of the market that interest rate will reach the lowest boarder received as hints from the Central Bank. Continue reading