The Euro fell against the dollar after reports China about the introduction of new duties

  • And
  • +A

Tuesday, 18 September, trading in the Euro ended lower. High volatility was observed in all sessions. In the first half of the day, the Euro increased to 1,1710. On the American session, the Euro fell against the dollar to 1,1652 against the background of rising yields on 10-year bonds at 3.06 per cent. Demand for the dollar rose after the news that China from September 24 to impose increased duties on imports of more than 5.2 thousand names of American goods by $60 billion. the Yield on 10-year bonds rose by 3.06%.
Planned stats (GMT+3):
• 11:00 EU will report the change in the balance of payments for July.
• At 11:30 Britain will publish consumer price index, retail price index, the index of purchasing/producers ‘ prices for August.
• At 12:00 Euro zone will release a report on the change of construction output for July.
• At 15:30, the United States announced about the change of issued building permits and number of housing starts for August and current account surplus for the second quarter.
• At 17:00 speech by the ECB President, Mario Draghi.
• At 17:30 US Department of energy announced the change of oil reserves in the country.
Курс евро упал против доллара после сообщения Китая о вводе новых пошлин
Fig. 1. Hourly chart EUR/USD
Current situation:
The pair Euro/dollar increased to the maximum of the previous week. Buyers were unable to break through, as news from China brought them back to the carrying line lb.
The high of the previous weeks was achieved ahead of time. If customers repeatedly come back to it, then the risks pass to 1.1725. Demand for Euro may increase based on expectations that the fed will not raise rates in December due to a trade war with China.
Technically, the Euro/dollar is to the downside. Considered the different patterns that fit the current situation. There are those who point to the update 1,1652. The question is which market participants will react?
On Wednesday, I expect the recovery rate of the Euro/dollar to 1,1766. You should pay attention to British statistics. The British pound may become a locomotive for the major pairs during the European trading session. If buyers will return to 1,1740, waiting for the rebound. Time before passing it.
Vladislav Antonov,