Read the story here. Advertise at Before It's News here.
Profile image
By Euro Rate Forecast (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Euro to us Dollar Slips Back From the Barrier of 1.2 but is Still Trading High

% of readers think this story is Fact. Add your two cents.

The wait goes on for a Brexit deal with both sides urging the other to make concessions. Meanwhile, Europe is still trading high against the dollar, with growing optimism about the path of the pandemic.

US Nerves

With USD, the euro held back from the psychological brink of $1.2 as the dollar picked up after risk appetite soured. It comes as optimism about the US economy has started to dissipate. Stocks are starting to crumble and all eyes are on Federal Reserve Chairman Powell who will appear before the Senate Banking Committee on Tuesday.

In prepared remarks, he struck a cautious note on the economic recovery saying the “pace of improvement has moderated”. His cautious sentiment was echoed by Treasury secretary Mnuchin who pushed for a $455 billion stimulus to avoid further economic hardship.

Euro is Still Trading at Around 0.1922.

The was slightly less positive news with signs of deflation in the Eurozone appearing likely to hamper gains for euro. Germany’s inflation has fallen by 1.0% and is no at -0.7% year on year. Inflation is also negative in Italy.

COVID Struggles

The Eurozone continues to battle a second wave of COVID 19, although there are signs that restrictions may be having an impact. The R rate which governs the rate of infection is below one in the UK. Hospital numbers have dropped sharply in France. In Germany experts expect infection rates to fall, although the response is beginning to stutter as state capitals start to increasingly diverge with Berlin on policy. Some states are loosening restrictions while others intend to keep them in place.

Brexit Battle

Brexit still casts a shadow over everything to do with sterling. Solid news of a deal remains elusive, although markets still expect one imminently. Suggestions that the EU’s Chief Negotiator Michel Barnier has been pressed by the European Commission to reach a deal, and that he may be open to movement on the main sticking problem of fishing rights, have raised hopes in some quarters.

The expectation is that the British pound will rally on news of any deal, at least in the short term, but will drop back if the two sides end the transition period without a workable trade deal. In the meantime, both are hovering waiting to see which way the wind blows and what’s blowing in it.

However, the downside risk for GBP is higher should the two sides somehow fail to close the remaining gaps.

Further Announcements Ahead

Elsewhere it’s a busy day in terms of economic announcements with Eurozone CPI announcements, manufacturing PMI, unemployment rates in Germany and manufacturing PMI for both France and Germany. Add to that the possibility that someone, somewhere might say something useful about Brexit and traders will have plenty of food for thought throughout the day.

Overall, though, the trend is bearish for the euro. Excited talk of Brexit deals and COVID vaccines have been replaced by renewed uncertainties and the harsh realities that, vaccine or no vaccine, coronavirus is here to stay, for the time being at least. Flexibility is key. Traders needing to be alive to sudden changes and unexpected news.

These are uncertain times. Keeping up to date with the latest market moves is even more important than usual. Get in touch with us using the form to learn more about the factors impacting your euro exchange.

The post Euro to us Dollar Slips Back From the Barrier of 1.2 but is Still Trading High appeared first on Euro Rate Forecast.


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.