Weak economic German data from last week, uncertain growth forecast in Eurozone, trade war risks and loose monetary policy signals from European Central Bank (ECB) – these are the main factors that keep value of the euro under steady pressure.
Markets now waiting for the newest data from Germany’s factory orders which is expected to fall by 6,4 percent (lower than the previous decrease by 5,6 percent). Those market results were last reported during the Eurozone debt crisis. Economic data from Eurozone now underperforming economists’ expectations since early June this year. Moreover, recently issued information about Eurozone investor confidence also changed its direction into negative area, touching a six-year-low. Thus, ECB’s rate cut and planned quantitative easing seems to be not enough for investors confidence.
EUR/USD is now oscillating around 1.0985, which a slight rebound from las week’s EUR/USD 1.0899.