Here is the EURUSD Fundamental Analysis of 19 November, 2019. The EURUSD is heading towards the weekly highs of 1.1090. It is against a backdrop of a general resumption of the US dollar.
19 November 2019, AtoZMarkets – Bulls are back at the helm as it moves towards the opening bells of Europe after US President Trump’s tweet about the Fed’s relatively higher rates has blocked the lukewarm recovery of the dollar among its major competitors. The dollar index left the highs of the session at 97.86 to trade at 97.79. Trump said he told Powell that the Fed’s interest rate was too high compared to other competing countries.
EURUSD Fundamental Analysis – 19 November 2019
The US dollar fell to its two-week low of 97.68 on Monday. After new doubts about the US-China trade deal resurfaced and weakened investor sentiment. “Trade deal concerns have resulted in lower US yields, falling stocks, the weak greenback, and increased demand for safe havens in the financial markets.
According to a CNBC report released last night, the climate in Beijing was pessimistic about the prospects of concluding the Phase One agreement. With the US. After Trump said, there would be no tariff cuts. And then that China is waiting for the outcome of the impeachment conflict of the American president.
Looking ahead, the US and China’s trade sentiment will remain the main driver of the market. That is in light of the second-tier macroeconomic publications on both sides of the Atlantic. “October US housing starts will release on Tuesday. And investors should surely follow the release of the minutes of the last Federal Reserve meeting on Wednesday. And the minutes of the European Central Bank on Thursday. Christine Lagarde, President of the ECB, is scheduled to speak in Frankfurt later in the week, “added Valeria.
The US dollar has changed little
The markets expected the agreement signed in the near future. Yet, the Chinese Ministry of Commerce spokesman Gao Feng said earlier this month that China and the United States had managed to an agreement on tariff reduction. However, economic adviser Larry Kudlow said Friday that the two sides were close to an agreement.
The US dollar index traded for the last time at 97.675 at 23.44 ET (03.44 GMT), up 0.01%.
The Governing Council agreed that monetary policy could be relaxed at this meeting. But the most appropriate approach would be to maintain the current monetary policy stance and to undertake a full assessment once more evidence of the effects of the earlier monetary easing had become available the report said.
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