Today in the foreign exchange market there is a rather interesting situation. We are talking about the simultaneous growth of the British currency with an equally dynamic weakening of the euro. We recommend considering the similar dynamics of two risky instruments in pairs. In particular, during today's trading, it fell by 50 points, sifting from 0.8389 to 0.8335. Thus, the euro continues to fall, having tested the minimum since May 2017 and reaching an 8-week low against the British pound. Pressure on EUR is exerted by weak data on industrial production, which confirmed fears about the weakness of the economy of the entire currency block. Earlier, speaking in the European Parliament, ECB President Christine Lagarde noted that in the event of an even greater economic downturn in the Eurozone, the European regulator will be ready for additional monetary stimulus measures. It is worth noting that the euro, being the main currency risk, more actively than others discounts in its own value the consequences of the negative impact on the global economy of the spread of coronavirus infection. Meanwhile, the pound rose amid news that Sajid Javid is leaving the post of Minister of Finance of Great Britain. Reshuffling in the ministry may cause talk of high costs in the expected draft budget, which will potentially support the economy in the short term. Despite the steady growth of the pound, we advise you not to forget about the prospect of a decline in England's GDP in the 1st quarter of 2020, as well as the continuing uncertainty regarding the trade deal with the EU. With that said, the euro and the pound can easily switch roles.
EURGBP BuyLimit 0.8310 TP 0.8510 SL 0.8270
Artem Deev, Head of Analytical Department, AMarkets
Fusion media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy / sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.