Business

Future Falls of EUR / GBP, EUR / AUD, EUR / CAD

Basic Euro Forecast: Bearish

  • NS EUR It continues to fall against most major currencies and EUR / GBP, EUR / AUD When EUR / CAD All are weakening and these trends may continue.
  • EUR / USD It is more stable, but weaknesses there are likely to resume at the end of the current integration period.

Euro outlook is bleak

The euro area, and more generally the European Union, has been hit by supply bottlenecks, rising energy prices, weak economic data and dovish central banks, so there is still no clear reason to expect a recovery in the euro. ..

Indeed, the euro U.S. dollar So far this month EUR /U.S. dollar After the previous slide, it has been integrated around the 1.1570 level, but again investors may pitch in recovery attempts.

EUR / USD price chart, daily time frame (May 20-14, 2021)

Euro (EUR) Price Forecast: Further Fall in EUR / GBP, EUR / AUD, EUR / CAD

Source: IG (Click to see a larger image)

Why the euro is so weak

Finding the reason for the weak euro is not difficult:

  • European gas prices are at record levels, pushing wholesale electricity prices up 200% in the first nine months of the year., according to Guardian newspaper. There are concerns that this could spread to the United States this winter, but the EU could suffer even more as the fall had an unusually mild start.
  • Supply problems are a serious problem in the EU, and five of Germany’s top economic research institutes warned last week:Intermediate product supply bottlenecks hinder manufacturing sector production“Europe’s largest economy;
  • Eurozone economic data is poor, for example, August industrial production fell 1.6% month / month compared to a 1.4% increase last month. The next update will come from a batch of “Flash” Eurozone Purchasing Manager Index (PMI) scheduled for this Friday in September.
  • The European Central Bank is categorically dovish and the market does not expect interest rates to rise until late 2023. “There is no impetus for monetary policy,” said Philip Lane, chief economist at the ECB, a week ago.When
  • in the meantime COVID-19 case study Continuing Fall to Europe, most parts of the world Suffering Moderate increase, According to the latest weekly pandemic update who..

that NS therefore As shown in the euro chart against the euro below, it is not surprising to see further losses of the euro against most other major currencies, even though some euro crosses have already plummeted. .. Australian dollar..

EUR / AUD Price Chart, Daily Timeframe (April 26-October 14, 2021)

Euro (EUR) Price Forecast: Further Fall in EUR / GBP, EUR / AUD, EUR / CAD

Source: IG (Click to see a larger image)

Want to know more about EUR And why trade it?Please see this article

— By Martin Essex, Analyst

Feel free to contact us on Twitter @ MartinSEssex



Future Falls of EUR / GBP, EUR / AUD, EUR / CAD

Source link Future Falls of EUR / GBP, EUR / AUD, EUR / CAD

Related Articles

Back to top button