• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

EUR/USD – Headed Below 1.22?

By Kurt Osterberg · On April 20, 2018

 

Euro is trading lower ahead of next week’s European Central Bank’s monetary policy announcement. After consolidating for 8 trading days and failing to break above 1.24 throughout that time, the EUR/USD finally broke down on cautious comments from ECB member Weidmann. The head of Germany’s Bundesbank said there were recent indications that the first quarter in Germany was “not so brilliant.” However on Friday, ECB President Draghi also said growth momentum is expected to continue and their confidence in the inflation outlook increased but the euro-area growth cycle may have peaked. Euro will be the main focus in the week ahead with a central bank rate meeting, Eurozone PMIs, the German IFO report and German labor market numbers scheduled for release. Since the last monetary policy meeting we’ve seen more deterioration than improvement in the Eurozone’s economy. Therefore we don’t expect Mario Draghi’s outlook to improve materially this month as German sentiment and spending deteriorates. The ECB is not ready to signal the end of QE and they are not thinking about raising interest rates anytime soon. If the PMI and IFO reports, which will be released before the rate decision miss expectations, investors will position for renewed dovishness from the central bank. The risk is to the downside for euro and dovish comments from Draghi could drive EUR/USD to 1.22.

Technically, EUR/USD has fallen below the 20 and 50-day SMA. This breakdown after tight consolidation is significant and the next stop should be the 100-day SMA near 1.22 followed by 1.21. If EUR/USD manages to rebound and finds itself back above 1.2375, then a run above 1.24 becomes likely.

Print Friendly, PDF & Email

Share Tweet

Kurt Osterberg

You Might Also Like

  • Finance

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

  • Finance

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

  • Finance

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

No Comments

Leave a reply Cancel reply

Top Finance

  • 3 Best Large-Cap Blend Mutual Funds For Enticing Returns 3 Best Large-Cap Blend Mutual Funds For Enticing Returns
  • What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage
  • Hedge Funds In The US Hedge Funds In The US
  • 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement
  • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce

New Posts

  • STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    June 20, 2022
  • NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    June 20, 2022
  • 5 NFTs Trending on Twitter Going Cheap to Invest in Now

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

    June 20, 2022
  • Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    June 20, 2022
  • Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    June 20, 2022
  • About
  • Contact Us
  • Privacy & Policy
  • Sitemap
  • Terms of use

Copyright © 2018-2021 NJCEE. All Rights Reserved.