cf. [EUR] Downward Trend Line still Valid 2019 0926
ISM Manufacturing PMI on Tuesday was released 47.8 which was 49.1 previous month and was forecasted 50.1 better than previous value. It is recorded low in ten years. ISM non-Manufacturing PMI was worse, too. It was released 52.6 on Thursday, which was predicted 55.1.
Non-farm employment change disappointed traders, too. Employee in non-farm sector increased 136 thousands, which was expected 145 thousands.
It can lowers greenback price enough, but its falling was restrained. The unemployment rate hit 3.5 percent, the historical low in fifty years.
There are signals of recession in the United States, but U.S. economy hints it's still good than euro zone economy.
One of the major currency pair, EUR/USD rebounded the bottom in some two years, but worse economy than that of the United States leads investors prefer greenback.
Though Federal Reserve cut its benchmark interest rate 25bp to 1.75 percent, it is higher than euro's. The main refinancing rate in euro zone or benchmark rate is zero percent and deposit interest rate is negative. ECB announced Quantitative Easing program as well as interest cut, soon.
And the US-China trade conflict and US tariff implications have had a negative impact on the euro.
Fed Chair Jerome Powell spoke on Friday that U.S. economy is still good and didn't hint about additional rate cut.
Technically, price of the currency pair didn't face the downward trend line yet. For euro's rising, the trend line should be tested whether is broken through or not, and it will not be broken at one time.
Therefore EUR/USD pair has more possibility of falling.
The price of the currency pair was 1.09760 at the end of the week and Euro FX-201912, or 6EZ19 was 1.10335.
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