The Euro set for further fall

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For the first time since the middle of last year, the Euro dropped under the mark of 1.13 and scored on a 17-mestnyh the lows around 1.1240. Now under threat is the 1.12 level, which will be completed, if the dollar bulls will continue to attack.
“American” receives support on expectations of further fed tightening in the December rate hike has little doubt, and next year is expected to at least three increase the cost of lending. Thus, the dollar wins on the subject of divergence of the courses of the monetary policy of Central Banks and receives additional support due to solid macroeconomic data in the United States.
Despite oversold, the Euro is expected to decline further in the coming days. And not only in a strong dollar. There are still budgetary situation of Italy, which refuses to amend its original plan, and thus Angers the European Commission, which threatens the country with sanctions. Also there are signs of slowdown in Eurozone economy, and the more they fed, the lower becomes the attractiveness of the single currency.
So, this Wednesday, Germany will publish preliminary GDP for the third quarter is expected to decline for the first time since the beginning of 2015. If projections are correct, this will be another blow for the Euro and sent the pair to fresh lows, if the dollar bulls will not go into the shadows.
Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS