EURUSD is correcting. Overview for 26.08.2019

26.08.2019

The major currency pair is correcting early in the final week of August; investors require “safe haven” assets.

After a positing trading session last Friday, EURUSD is back to falling. The current quote for the instrument is 1.1112.

There are few statistics today, but those numbers, which have already been published, aren’t in favor of the Euro. The German Ifo Business Climate dropped to 94.3 points in August after being 95.7 points in July, which is worse than expected. Later in the afternoon, the USA are scheduled to report on the Durable Goods Orders in July, which is expected to add 1.4% m/m after expanding by 1.9% m/m the month before. The indicator itself is rather volatile, it should be interesting to look at the components. 

Investors’ attention is focused on the latest escalation in the US-China trade wars, which may support the USD: as long as both countries are fighting each other for the sphere of influence in the global economy, market players require “safe haven” assets to escape risks. Last week, China announced import tariffs of US goods on 75 billion USD, so the United States immediately responded, but several times more.

It means that trade negotiations, which were conducted with varying degrees of success over the last 8 months, have pretty much failed. What’s next? Probably, each side may try to “steal the show” on the global arena. How will market players respond? It is logical to assume that unenthusiastically. 

At the same time, it is hard to believe that this issue would “run out of steam” so easily. Aggravation was just a question of time.
 

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.