The Euro: dollar Recovery was short-lived
Dollar recovery was short – inspired rally of the stock markets of the USA, “American” went up sharply in the major currency pairs, but after Bouncing resumed its bearish move, and investors quickly lost enthusiasm. After the spectacular rise of the indexes on wall street, in Asia have experienced predominantly negative dynamics, and the Old world indices opened mixed, which only confirms the nature of the recent technical correction of oversold conditions.
The dollar moving South again against other major currencies. The Euro resumed its rise towards the level of 1.14, and despite the openly bearish tone of the economic Bulletin of the ECB. In particular, the document controller is mentioned about the growing downside risks for the region’s economy and the world economy as a whole.
It seems that the Central Bank begins to prepare the ground for changing its rhetoric against the prospects of higher rates and in 2019 will push back the timing of the first increase, focusing on economic signals. This is confirmed by the phrase of the ECB that the European economy is still in need of large-scale promotion.
So that in the future more pessimistic, the Bank could put pressure on the Euro, unless, of course, the dollar will not face the full suspension of the increase in the cost of lending in the coming year.
In the short term the single currency will focus on overall market sentiment as well as on the situation in Italy, where the Parliament must vote on the budget until December 29.
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