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Old 21-01-2019, 11:43
ObasiFXMart ObasiFXMart is offline
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Default Re: Daily Market Analysis by ForexMart

EUR/USD Fundamental Analysis: January 21, 2019



The euro major pair struggles amid the geopolitical and economic problems that resulted in calm price action. It broke the significant support level of 1.1364 on Friday. It drops as low as 1.1353 given the dovish pressure from the European market in euro for the week, despite the steady risk appetite. With euro affected by the political concerns, these events continue to bring in a bearish influence on Monday session that is anticipated to limit the upward potential in the European market. A number of European news, including Brexit deal negotiation, “Anti-EU Axis” of Italy, French yellow vest protest, have continuously affected the economic activity. At the same time, this hurts the investors’ risk appetite in the background of China-US trade war also puts a ceiling to the bullish possibilities of the pair.

The trade war between China and the US remains to be the main factor, influencing the long-term high-risk assets in the global market, as well as other news that gives rise to the higher risk in worsening the trade war while bearing in mind the issue on Intellectual property infringement to influence the long-term trend and suggests a higher possibility of a downward movement of short-term trades. On another hand, China’s GDP implies growth despite trade war that has slowed down the Chinese economy in less than 30 years, which in turn keeps steady the risk appetite in Asian markets. This boosted the rebound of the pair last week following a post minor consolidation at the beginning of the Asian market. However, there is not enough headlines to support the bulls, hence, limited its uptrend at 1.137 prior to the European hours.

On the economic calendar releases, it seems to be subdued for both currencies but expecting for the German PPI data that is presumed to drop compared to the previous reading of the European economic climate and largely impact the near-term trading of the common currency. Amid the careful sentiment of the global market with the prevalent risk appetite and lack of fundamental data for the euro, we can assume for the resumption of a bearish price movement of the pair in the future.
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