The euro/US dollar was appointed for the decisive vote in Bundestag next Tuesday on the German Defense Office Bill
- EUR/USD briefly returns to 1.0900 on a wave of titles on Friday.
- The World Trade Organization can study whether the US tariff policy of President Trump is illegal.
- The markets have a sign of relief on the risk of issuing a draft spending law, and avoiding the closure of the United States government, later on Friday.
The EUR/USD pair is a higher and recovered to 1.0900 at the time of writing this report on Friday, erasing his slow performance earlier this week. The recovery comes in the husband after the headlines appear late on Thursday. The United States Democratic Leader (United States), Chak Schumer, has announced that he is planning to vote to keep the government open, support advanced government financing measures in the House of Representatives and to end the risk of closure in the United States effectively.
Meanwhile, Canada began a complaint with a conflict in the World Trade Organization (WTO) and requested a look at the tariff applications of US President Donald Trump, which may be illegal and contradict the rules of the World Trade Organization, according to Reuters reports. This means a huge setback for President Trump’s plans before the mutual definitions that will enter into force in April.
Daily Digest Market Movers: Michigan Accounts
- On Tuesday, the German Bondstag will be voted on the defensive spending package. If a two -thirds majority is reached on Tuesday, the spending plan will be a large elevator for the euro.
- Gold, as one of the assets of the safe haven, violated the brand of $ 3000 on Friday in a stagnation march where merchants are concerned about economic growth and definition expectations, with mutual fees in April.
- Michigan University has released its initial forecast for consumers in reading for the month of March:
- The American Consumer Feelings Index decreased less than 60 to 57.9. Miss Great Against expectations at 63.1 and from 64.7 in February.
- The inflation forecast jumped in the United States for 5 years to 3.9 %, overcoming 3.5 % in the last reading in February.
- Arrows try to clean the tone of this week. All indicators rose more than 0.50 % throughout Europe and the United States on Friday.
- The CME Fedwatch Tool provides a 97.0 % opportunity for the Federal Reserve (Fed) to maintain interest rates unchanged in the next decision on Wednesday. The chances of lowering price rates in Mayit Stand are 32.8 %, while it shows a possibility of 78.5 % of prices lower than current levels in June.
- The return in the United States is trading for 10 years about 4.329 %, from the lowest level of approximately five months at 4.10 % printed on March 4 and after it reached the highest level in five days on Thursday.
Technical Analysis: Next week
The closure of Friday is vital to the UN/US dollar husband. From the looks on technical plans, the husband has good possibilities for closing over the decisive rising trend line (green in the graph below), which provided support on Thursday and Friday. The closure above this line may mean that the psychological level is 1.1000 can enter the cards heading to next week.
On the upper side, 1.1000 is the main level to search for. Once this level is violated, the husband enters the famous 1.1000-1.1500, as he often tends to stay for some time. The large number 1.1200, which coincides with higher levels in September and October last year, seems interesting to a summary test and a higher breach.
On the negative side, the upward trend at 1.0840 still has to provide support at the present time. If it erupted, the road is open to go to the 1.0700 area. The simple moving average for 200 days (SMA) should be about 1.0722 key for merchants who want to buy DIP.
The euro/US dollar: the daily chart
German economy questions and answers
The German economy has a major impact on the euro because of its position as the largest economy within the euro area. The economic performance of Germany, its gross domestic product, its employment, and inflation, can significantly affect the stability and comprehensive confidence in the euro. With the strengthening of the German economy, it can enhance the value of the euro, while the opposite is true if it weakens. In general, the German economy plays an important role in shaping the strength of the euro and its perception in global markets.
Germany is the largest economy in the eurozone and therefore an influential actor in the region. During the sovereign debt crisis in the euro area in 2009-12, Germany was pivotal in establishing various stability funds to save the debtor countries. It took a leadership role in the implementation of the “financial compact” in the wake of the crisis – a group of the most striking rules for the Department of Financial Affairs of Member States and punishing “debt sinners”. Germany led the culture of “financial stability”, and the German economic model has been widely used as a plan for economic growth by its fellow members of the euro zone.
The factors are the bonds issued by the German government. Like all bonds that pay regular payment holders, or voucher, followed by the full value of the loan, or manager, when entitled. Since Germany has the largest economy in the euro area, factors are used as a criterion for other European government bonds. Long -term factors are seen as a strong and risk -free investment as they are supported by the full and credit belief of the German nation. For this reason, investors treat them as a safe veil by investors-and they acquire value in times of crisis, while declining during periods of prosperity.
German revenues measure the annual return that the investor can expect from the German government bond contract, or firmness. Like other bonds, the benefit of payment holders at regular intervals, called “voucher”, followed by the full value of the bond when entitlement. While the voucher is fixed, the return varies taking into account the changes in the price of the bond, and therefore is a more accurate reflection of the return. The decrease in the price of the bond raises the voucher as a percentage of the loan, which led to a rise in the return and vice versa. This explains why Bond yield is inversely moved to prices.
Bundan Bank is the Central Bank of Germany. It plays a major role in implementing monetary policy within Germany, and central banks in the region on a larger scale. Its goal is to stabilize prices, or keep inflation low and predictable. It is responsible for ensuring the smooth operation of the payment systems in Germany and participating in overseeing financial institutions. Bundesbank has a conservative reputation, which gives the priority to fighting inflation on economic growth. It was influential in the preparation and policy of the European Central Bank (ECB).
