Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

76.5% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

EUR: the eye of the storm

EUR: the eye of the storm

Information is not investment advice

Broken glass

“Any two points can make a straight line” – that’s a fair reply to the picture below if I intend to convince you that the mid-term outlook for the Euro is duller than anything else. Let’s see the strategic horizon then.

EURUSDH4.png

It looks like the downtrend rarely has been alternated by an upward trajectory with the EUR/USD. The breaking point is the crisis of 2008 after which the EUR could never stand up against the USD and hold its ground for more than a year or so. The last episode of a downward movement which starts in the middle of 2018 is so smooth and consistent as if it was “supposed” to be there. In this context, the vulnerability of the EUR against the US dollar due to the virus changes little in the grand scheme.

EURUSDMonthly.png

In fact, the crisis Europe is going through now may expose and propel those internal mechanisms that are driving the EUR down. Those mechanisms may be the same that question the economic integrity of the European Union itself, and hence, EUR as well. It’s yet time to open Oswald Spengler’s “The Decline of the West”, though. What’s happening right now in Europe?

Lower than expected

The latest data input from the European economic indicators was the Euro Area Manufacturing PMI. The released 33.6 mark was significantly lower than the expected 39.2, even with the factored in virus drawdown. That means that the situation in Europe may be worse than it may be conceived. In fact, the more news comes to the stage, the more it seems so. No surprise that the European stocks are shaken and the EUR gets weaker.

EUR2.jpg

Is there a way out?

In theory, of course, there is. But realistically, it is very hard to achieve a sustainable exit from the recession for the EU as such. There are too many disparities and economic differences between the countries, applied to the virus response specifically, and in general, that has been the case even before the virus. The infections numbers are still rising in some of the countries, while in others they never have threatened the state as much as they did from the very beginning for others. Virus lockdowns are big damage to businesses, and lifting these lockdowns will be another problem when the time comes. And the list goes on, so it is easier to name what is not an obstacle for the EU to get over the crisis and have the EUR get in the zone of confidence. Let’s not be pessimistic about the EUR though. The battle goes on.

                                                                                                 LOG IN

Similar

How to Stay Calm and Trade on Uncertainties

Despite the negative news and worrying headlines, we recommend traders to make mental reframing of the situation. This way, you can look at the market from a different perspective. Let’s observe how you can take advantage of the uncertainties and make the fundamentals work for you!

Popular

Gold isn't saving investors from inflation

Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?

Bitcoin Skyrockets Ahead of ETH Merge and US CPI Release

First, "ETH merge" Google requests are on the rise. At the same time, "buy ETH" requests are at their two-year lows, which is quite a negative factor ahead of the vast update. The community either doesn’t believe in the success, or they are following the "buy the rumors – sell the news" rule and waiting for the massive dump after the merge.

Choose your payment system

Feel the Team Spirit

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later