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Euro/US dollar falls around 1.1300, as the optimism of the bond market exceeds the effect of delaying the European Union’s tariff

  • Euro/the US dollar suffers from strengthening the US dollar, as US revenue is weakened by the potential cuts in Japan in the issuance of government debts.
  • Greenback acquires a ground before Meethe Meets 7 May on Wednesday.
  • Trump has been satisfied because the European Union accelerates the process to reach a trade deal with the United States.

Euro/dollars Its losses continue for the second consecutive day, trading about 1.1310 during the Asian hours on Wednesday. The husband decreases k US dollar (USD), while the United States lowers a decrease after Japan’s reference to potential cuts in government debt issuance, which strengthened global bond markets. At the time of writing this report, a 10 and 30 -year -old yield on the US Treasury Bonds It stands at 4.46 % and 4.97 %, respectively.

In addition, Greenback received support as the consumer confidence index in the conference council rose to 98.0 in May of the previous 86.0 reading. Meanwhile, strong goods in the United States decreased by 6.3 % in April compared to an increase of 7.6 % before. This number came in the best estimated decrease by 7.9 %. Merchants are likely to wait FOMC minutesWhich is scheduled later on Wednesday.

New York Reserve Bank, John Williams, stressed the importance of inflation expectations, which must be well established. Williams wants to avoid being very continuous because this may become permanent by responding relatively when inflation begins to deviate from the goal. On Tuesday, Neil Kacquari, head of the Minneapolis team, said that policy makers should avoid any interest rates in order to reach clear estimates of inflation due to high definitions.

However, the euro euro (EUR) has supported support while reducing trade tension between the United States (the United States) and the European Union (European Union). On Sunday, US President Donald Trump extended the deadline for a tariff for imports from the European Union from June 1 to July 9. On Monday, Brussels agreed to accelerate trade talks with the United States to avoid a commercial war.

On Tuesday, US President Donald Trump expressed his consent in a position in social reality, noting that the European Union is speeding the process towards reaching a trade agreement with US. Trump wrote, “I was very satisfied with allocating a 50 % tariff for the European Union, especially as they are“ slow walking. ”I just told the European Union to have contacted the dates of the meeting quickly. This is a positive event, and I hope they would do so.

Common questions euro

The euro is the currency of the 19 European Union countries belonging to the eurozone. It is the second most traded currency in the world behind the US dollar. In 2022, it represented 31 % of all foreign exchange transactions, with an average daily rotation of more than $ 2.2 trillion per day. EUR/USD is the most trading currency pair in the world, which represents an estimated 30 % of all transactions, followed by EUR/JPY (4 %), EUR/GBP (3 %) and EUR/AUD (2 %).

The European Central Bank (ECB) in Frankfurt, Germany, is the backup bank. The European Central Bank sets interest rates and runs monetary policy. The primary mandate in the European Central Bank is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary performance is to raise or reduce interest rates. Relatively high interest rates – or expect higher rates – usually benefit from the euro and vice versa. The Board of Directors of the European Central Bank is making monetary policy decisions at eight times a year. Decisions are made by the heads of national banks in the eurozone and six permanent members, including the President of the European Central Bank, Christine Lagarde.

The inflation data in the euro area, measured by a coordinated index of consumer prices (HICP), is an important economist for the euro. If inflation increases more than expected, especially if it is 2 % higher than the European Central Bank’s goal, then the European Central Bank is obliged to raise interest rates to return it in control. Relatively high interest rates usually benefit compared to its euro counterparts, as it makes the region more attractive as a place for global investors to stop their money.

Data ejaculates a measurement of economics health and can affect the euro. Indicators such as GDP, manufacturing, PMIS, employment services, and consumer morale surveys can affect the trend of uniform currency. The strong economy is useful for the euro. Not only is to attract more foreign investment, but the European Central Bank may encourage interest rates, which will enhance the euro directly. Otherwise, if economic data is weak, the euro is likely to decrease. Economic data of the four economies in the eurozone (Germany, France, Italy and Spain) are of particular importance, because it represents 75 % of the eurozone economy.

Other important version of the euro is the commercial balance. This indicator measures the difference between what a country gains from its exports and what it spends on imports during a certain period. If a country produces very absolute after exports, its currency will obtain a purely value of the additional demand created from foreign buyers who seek to buy these goods. Therefore, the positive and positive trade balance enhances the currency and vice versa to achieve a negative balance.

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