Fall in Eur

[M.A 10]

We all were watching eur rallying strongly against usd for more than a week. For the first time it showed bearish trend today. There were a couple of reasons why it weakend against usd today.

One important reason is political instability in spain. Another reason is currency value went high very quickly and this bearish trend was due. Do u think a rise of around 7% in eur against usd was uncomfortable for ECB? or is it possible that they arent happy about this quick rise? If we look at broader scenario, eur/usd is at average level. I mentioned in my previous post about eur/usd that draghi's steps to benefit individual countries and strenghthen euro currency will only work for short term. Eurozone will have to pay price in long run coz their growth rate doesnt match with currency rise.

Prime focus of investors, this week, will be Draghi's speech. But he has fewer choices to answer the question about this gain in currency. It is highly possible that ECB will not talk about euro unless someone asks.

 

Draghi's stance is already known. Spain is facing political issues. I think traders should be ready for more bearish moves by eur/usd.

[TRADER617 10]

As predicted. Thanks.