EUR/USD holds the lead among the outsiders
22.09.2014
At the start of the new week, the main currency pair is trading down in anticipation of the evening publications on consumer confidence in the euro zone.
The EUR/USD remains at the local minimums on Monday. The main currency pair remains under fundamental pressure, although no particularly important news has currently appeared. The market is "stuck", with sluggish sales in anticipation of the publication of the index of consumer confidence in the euro area for the current month (15:00 GMT). The averaged forecast assumes that the data will once again come out "minor." This will only add to the enthusiasm of the salesmen of the Eurocurrency.
So far it is obvious that stimulating the economy of the euro zone by the reduced interest rate (0.15% pa) and negative deposit rates does not give a tangible effect. It is almost a year since the first conscious stimulating rate reduction took place, but the economy of the E-18 is not exactly better.
There is some hope that the auction format LTRO planned for autumn will give a supportive effect. However, it should be understood that it is not a panacea, but merely "covering up the symptoms." The European Central Bank was about a year late with the treatment, and within the economy there are noticeable complications in the form of, for example, an approaching deflation.
For now the euro/dollar will remain in a downtrend with the "bears’" target at 1.2910.
RoboForex Analytical Department
The EUR/USD remains at the local minimums on Monday. The main currency pair remains under fundamental pressure, although no particularly important news has currently appeared. The market is "stuck", with sluggish sales in anticipation of the publication of the index of consumer confidence in the euro area for the current month (15:00 GMT). The averaged forecast assumes that the data will once again come out "minor." This will only add to the enthusiasm of the salesmen of the Eurocurrency.
So far it is obvious that stimulating the economy of the euro zone by the reduced interest rate (0.15% pa) and negative deposit rates does not give a tangible effect. It is almost a year since the first conscious stimulating rate reduction took place, but the economy of the E-18 is not exactly better.
There is some hope that the auction format LTRO planned for autumn will give a supportive effect. However, it should be understood that it is not a panacea, but merely "covering up the symptoms." The European Central Bank was about a year late with the treatment, and within the economy there are noticeable complications in the form of, for example, an approaching deflation.
For now the euro/dollar will remain in a downtrend with the "bears’" target at 1.2910.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.