On Monday, the single European currency backed down a bit on the eve of the meeting of the European Central Bank, which will be held later this week, at which new incentives are expected from politicians to support a weakening regional economy.
On Monday, the single European currency backed down a bit on the eve of the meeting of the European Central Bank, which will be held later this week, at which new incentives are expected from politicians to support a weakening regional economy.
On Monday, the single European currency backed down a bit on the eve of the meeting of the European Central Bank, which will be held later this week, at which new incentives are expected from politicians to support a weakening regional economy.
Expectations of a weakening of the ECB policy are due to the fact that other global central banks are taking similar steps, and the People’s Bank of China intends to increase lending on Friday.
Data released on Sunday indicates that calls for easing central bank requirements reinforce signs that the global economy is struggling with China's unexpected drop in August exports.
The US dollar is limited to a narrow range against the yen, as traders are weighing the prospect of lower interest rates in the US compared to their demand for safe-haven assets.
At the moment, the EURUSD pair is trading with a slight increase at the level of 1, 1031.
The European Central Bank will almost certainly approve new stimulus measures on Thursday in order to somehow support a weakened economy, but the composition of the package is far from clear, as there is a gap between the hawks of northern European politics and the pigeons from the south.
German export data later Monday may provide further clues about the state of the European economy.
European politicians are in a hurry to support economic growth, as a widening trade dispute between the United States and China drags on for a second year, increasing the risk of a recession.
Among Asian currencies, the yuan started the week in the red after weak trading data. Chinese figures indicate that if investors do not see progress in the US and Chinese trade negotiations, further mitigation will be required, including tolerance for further weakening of the yuan.
The British pound also fell, as political uncertainty over how Britain ends its divorce from the European Union continues to reduce investment in the British currency.
The pound is now trading at $ 1.2288 after falling 0.4% last Friday.
The dollar index against a basket of six major currencies rose by 0.03% to 98.447.
The dollar is trading at 106.96 Japanese yen, up to 0.04% from Friday.
During the day, the yen may weaken, as one of the most powerful typhoons that have hit Tokyo in recent years has forced the government to cancel many railway destinations.
EURUSD: Buy. Entry point – 1, 1032. Take profit – 1, 1048. Stop Loss – 1, 1004.
GBPUSD: Sell. Entry point – 1, 2278. Take profit – 1, 2255. Stop Loss – 1, 2285.
AUDUSD: Buy. Entry point – 0, 6850. Take Profit – 0, 6860. Stop Loss – 0, 6800.
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