EUR/USD hit the 2019 lows only to bounce back and surge in a knee-jerk reaction to the ECB’s decision. Where next? Here is their view, courtesy of eFXdata: Societe Generale Research discusses the EUR outlook in light’s of yesterday’s ECB policy meeting. “For now, Mario Draghi looks like an ageing boxer, fighting to the end. His … “EUR/USD: Fall Nearly But Not Quite Over; USD Long Rally Nearly But Not Quite Done – SocGen”
Category: Opinions
EUR/USD has room to fall as ECB QE may never end
The European Central Bank has announced a new bond-buying scheme and a rate cut. The open-ended nature of the scheme implies further falls for the common currency. EUR/USD has room to extend its falls, risking the 2019 lows. Super Mario supercharged EUR/USD – triggering a range of 120 and sending it plunging. Mario Draghi, president of the European … “EUR/USD has room to fall as ECB QE may never end”
BOC may send the Canadian dollar down despite upbeat data
The Bank of Canada is set to leave rates unchanged but express concern. The Canadian economy is doing well but uncertainty is growing. USD/CAD may rise in the most likely scenario. Snatching defeat from the jaws of victory – is one way to see the possible outcome of the upcoming decision by the Bank of … “BOC may send the Canadian dollar down despite upbeat data”
EUR/USD may resume falls despite upcoming US recession
US ISM Manufacturing PMI shows contraction that indicates growing chances of a recession. The US dollar dropped on growing chances for a Fed cut. EUR/USD gains may come to an end ahead of the ECB decision. The US manufacturing sector may be contracting – indicating a recession. ISM’ Purchasing Managers’ Index (PMI) for the manufacturing … “EUR/USD may resume falls despite upcoming US recession”
RBA may send the Aussie down – without cutting rates
The RBA is set to leave interest rates unchanged at 1%. The bank may convey a worried message amid growing uncertainty and weak data. AUD/USD is vulnerable to falling to new lows. The relative calm may make way to a plunge to new ten-year lows – even if the Reserve Bank of Australia maintains the … “RBA may send the Aussie down – without cutting rates”
USD/CAD may rise after Canadian GDP
Economists expect Canadian growth of 3% in the second quarter. Upbeat growth may be a one-off amid a sea of issues. USD/CAD may drop in response to the news but rise afterward. Economists expect a 3% annualized growth rate in a developed economy – and they may be correct in the case of Canada for … “USD/CAD may rise after Canadian GDP”
Why US GDP may weigh on the dollar
Updated US GDP figures have shown that the economy grew by 2% annualized in Q2. Robust consumption outweighed a contraction in investment. The odds of a rate cut have grown and the dollar may struggle. Headlines do not always tell the full story – and that is the story in today’s US Gross Domestic Product … “Why US GDP may weigh on the dollar”
Germany needs a new government to end the recession
Germany is on the verge of a recession and may take the whole euro-zone with it. Monetary stimulus by Draghi and later Lagarde may be insufficient. A change of guard in Berlin may be needed for a significant difference. The euro may continue suffering until then. The locomotive of Europe is at a standstill – … “Germany needs a new government to end the recession”
Fed overwhelmed by Trump’s trade wars – what’s next for USD?
Fed Chair Jerome Powell has hinted of more stimulus in Jackson Hole. Monetary policy seems insufficient to battle a global downturn due to trade. The dollar is set to react differently to different currencies. “The most powerful central banker in the world” – is how we and others characterize Fed Chair Jerome Powell. While that … “Fed overwhelmed by Trump’s trade wars – what’s next for USD?”
German PMI preview: Three scenarios with a risk for EUR/USD
Prospects for Germany’s economy have likely remained grim in August. The ECB is watching the survey data ahead of its next decision. FXStreet’s Surprise Index is pointing to a disappointing outcome that may weigh on EUR/USD. A car cannot accelerate without a strong engine, and a train is unable to advance if its front car … “German PMI preview: Three scenarios with a risk for EUR/USD”