The major currency pair moved downwards after Donald Trump’s comments.
EURUSD reached stability on Wednesday afternoon, but investors are still worried by the message the US President Donald Trump tweeted yesterday. The current quote for the instrument is 1.1342.
Yesterday, Trump tweeted that the agreement with China had to be a “real” one or there will be no agreement at all. In case the parties can’t come to a decision, the USA will continue increasing import duties on Chinese goods. Trump’s way to inform the media and investors remains the same: he uses social networks to send his messages as quickly as possible. And it wasn't long before investors responded: yesterday’s decline of the US stock market was one of the most significant this year. investors switched to “safe haven” assets, such as the USD.
Emotions calmed down a bit today, but investors are still following the American-Chinese conflict.
Another thing that helped the European currency reach stability was today’s statistics. The Retail Sales in the Euro Area added 0.3% m/m in October after losing 0.5% m/m in the previous month and against the expected reading of +0.2% m/m. On one hand, this might be a slight correction of the weak September reading, but on the other hand, the indicator may have been supported by a seasonal factor.
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