The single European currency is feeling quite well; the “play against the American currency” trend is still in effect.
The US Dollar isn’t gaining any significant support. The current quote for the instrument is 1.1380. It’s the highest since October 19th
According to economic institutions of France, Germany, and several other European countries, in quarters to come there will be a significant expansion of the economy, mostly thanks to more active domestic consumption. Earlier, we discussed this question many times and arrived at the conclusion that consumption numbers in the Eurozone would not grow until the population sees the perspective, which is more or less obvious. It looks like horizons have become more transparent, once Insee and Ifo make such forecasts.
The average growth rate of the GDP in second-fourth quarters of 2016 is expected to be approximately 0.4% quarterly. The expected inflation won’t exceed 0.3% by the end of the third quarter, the average quote for the EUR/USD pair won’t be more higher than 1.12.
These are very interesting conclusions, considering that they are based on such slow-moving indicators as consumer confidence and household spending. The Eurozone economy is surely to recover in the months to come, thanks to efforts from the ECB as well. The Eurozone has never known such strong financial support, and it must push its economy to a brand new level.
So far, the capital market is more interesting in speculative elements. The more scandalous the news is, the more dramatic the responds are. The trend against the US Dollar remains in effect until stronger catalysts appear.
RoboForex Analytical Department
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