EUR Currency Pair 2015
The easing policy of the ECB puts pressure on the Euro
Recent trading on Forex presented an unexpecting surprise to traders.
The EUR/USD currency pair is the most liquid, since it involves the first and the second world reserve currency. The EUR/USD is most often negatively correlated with the USD/CHF and positively with the GBP/USD.
The currency pair is influenced by external factors, not only by demand and supply. For example, the EUR/USD is affected by the interest rate set by the Fed and the ECB. That is why any performance of the American or European regulator affects the EUR/USD exchange rates directly.
Investors are cautious with the Euro after the minority government of Portugal collapsed, and left-wing parties overthrew the ruling center-right. This is the first case of movement against an elected government since the end of dictatorship in 1974.
Experts believe that the Greek scenario is unlikely, but the political uncertainty in Portugal does not promise any good for the Euro. Fiscal policy of Portugal is more manageable than in Greece.
The expectations for the ECB easing policy most likely will continue to put the downward pressure on the Euro. Mario Draghi announced that the ECB will revise its monetary policy at December meeting.
Speaking about the Greek protest, he admits that it is not right to blame the ECB for suffering from saving policies. This is the fault of the Eurozone members. At least three countries have successfully completed their own similar programs since 2010.
At morning the Euro in tandem with the dollar returned to level of 1.070, however, it rose again to the level of 1.0756. On Tuesday the USD / EUR currency pair 2015 dropped to 1.0684 after breaking the line of 1.0704 last Friday.
After the SNB abandoned the observance of the long protected the CHF / EUR currency pair 2015, the market began to panic which caused the fall of the pair for more than 1500 points already. It should be noted that such a reaction of the market affected other pairs with the European currency as well, and each of them is experiencing a wave of selling. However, the sale has ended with "stud", as bulls quickly recovered giving Euro pairs to repeat the long collapse of the EUR/CHF.
The EUR/GBP implemented a priority descending model, which continued its bearish trend. Last week's low update says about the fundamental pressure on the exchange rate of the Euro sellers. The pair is trading below the balance of January, which also indicates descending priority.
The real reduced target for the GBP / EUR currency pair 2015 is becoming the 2008 low (0.7394), which is only 2.5% lower than current rate. For this reason, you must look for a favorable entry point into short positions with the medium-term prospects. Any compensatory model will give the opportunity to do so.
An alternative model will occur if the course begins to implement a compensatory model starting from current grades. The main target of correction will be the last week’s low (0.7594). It is understood that at this stage there is no evidence of a reversal pattern, therefore, any growth must be used to obtain favorable prices for sale.