The Euro reached record high against the dollar after the lowering of the forecast at a rate of

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The single currency is growing with the beginning of the week, significantly speeding up the rise on Thursday auction. After a short rebound and a morning of consolidation, the bulls again spoiling for a fight. EURUSD again “pierced” the mark of 1.14 and got to the 1.1480 area where is located the 100-day moving average, studyusa the ardor of buyers.
The current rally fueled by a pair of positive factors for the Euro and at the same time negative drivers for the dollar. In the first case, the relief brought news from Italy, which still managed to negotiate with the EU its budget for the year 2019, thereby avoiding sanctions.
For this purpose the Italian authorities, of course, had to make concessions: the target level of the budget deficit was reduced from an initial 2.4% to 2,04%, GDP growth forecast lowered from 1.5% to 1%, and the reforms will be implemented in abbreviated form. Given that until recently, investors were pricing in the escalation of the conflict between Emomi Brussels, this turn of events was a real victory for the Euro.
As for the dollar factor, its influence is obvious. The American currency is falling across the entire spectrum of the market, despite the rhetoric, the fed was more dovish than feared most market participants. First, the position of the USD weakens everywhere in its aggressive decline in the yen. Second, the Outlook for interest rates in 2019 was reduced (from three to two). Third, dollar bulls may have thought that the regulator just makes a good face on a bad game and does not want to admit that he will still have to press the brake pedal next year.
In any case, the combination of these two factors gives strength single currency, but the rest of the week EURUSD will go through another test tomorrow, US data. To publish submitted data on GDP and indicators of personal consumption expenditures. If the numbers come out higher than forecast, depreciating “American” can attract demand that to prevent the breakdown of the level of 1.15 to the end of this week.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS