The Euro is trading in modest positive territory

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The Euro is trading in modest positive territory following yesterday’s rise. On the weekly chart the pair EURUSD remains in negative territory, with the sale of the risky asset early in the week. However, the single currency may still come out in the green zone if the ECB wouldn’t scare off buyers, and the us retail sales point to weaker consumer demand and thus put pressure on expectations for further fed tightening.
Local support for the single currency to be provided primarily outside factors. This is the General weakening of demand for the dollar in the context of increased optimism over relations between Washington and Beijing and weak inflation data in the United States. This strengthening of the pound in the hope of progress on key issues Brekzita. It’s timid, but optimism about Italy.
By the way, today the government presented an updated budget for the year 2019, in which the target level of deficit revised from 2.4% to 2.04%. However, while one should not fall into euphoria and expect that this crisis will end – the big threat that this time the Commission will reject the plan of Rome and will require even more stringent cuts in government spending.
The current attitude of the Euro at this stage is regarded as neutral. The realization of downside risks for the dollar can spur demand for the single currency, as the conservation interest at risk. In the near future EURUSD is hoping to get support from the ECB, which is likely to announce the completion of its asset purchase programme.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS