Yesterday, EUR/USD inched up, halting a three-day losing streak. The currency pair traded in a tight range between $1.0805 and $1.0888, before closing at $1.0874, up 0.12% on the session.
Euro gains versus the greenback due to the following reasons:
Firstly, the reported by the US Federal Reserve (Fed) showed the US economic picture is not growing evenly.
Beige Book economic survey is based on reports from late November 2015 to early January 2016 from 12 branches of the Fed. Two branches reported growth with moderate speed and 7 branches reported slower growth. With the exception of Boston reporting gains, the branches in New York and Kansas City both reported dismal economic activity. In particular, U.S. energy companies is those who suffer the most when there are no support for oil price in both supply and demand.
The report emphasized the challenges that are facing the Fed meeting later this month: The labor market flourishes can not push wages and inflation accelerating. There are very few economists expect interest rates will change in its meeting on 26-27/01, prospects Dollar rose after tightening might just come a time in March when the ability Fed tightening economic clearer. So dollar pressured prices, pushing the pair up.
Second, US stocks declined while global stock stabilized
While the stock in Asia and Europe improved somewhat when trade figures of China exceeded expectations and the Chinese government took measures to stabilize the market and prevent the selling-off and remove the psychological contract staff RMB will be devalued further, the US stock market is affected stock from manufacturers of consumer goods, retail and energy. Indicators Dow Jones Industrial Average fell more than 360 points while the S&P 500 slipped 2.5% to close at 1,890.28 points, the lowest since March 2015.
When the whole world, “crazy”, the dollar will act haven assets, but the US alone, “upset”, the dollar has to suffer the consequences, the pair EUR/USD therefore be Support went up yesterday
The US dollar index, a measure of the greenback’s strength versus the basket of six other major currencies gained more than 0.15% to an intraday high of 99.40 before falling at the end of the session and closing at 98.98 points.
Analyses of Group IF24H