Article By RoboForex.com

On Monday afternoon the main currency pair is trading neutrally, the “bulls” are not losing hope to go above 1.34, but the buyers do not have enough strength.

This Monday the euro is trading below 1.34, although at the start of the European trading session, the main pair attempted to go a little higher. The buyers clearly lack enough good news, but where can you find them?

It is already clear that the economy of the E-18 plunged into stagnation. I already wrote about the fact that a sluggish stagnation process is able to undermine and destroy the European economy faster than a recession. With an annual GDP growth of 0.7%, the euro zone is unlikely to be able to talk about a recovery, all the more so in the second quarter the growing momentum was noticeably weaker. The European Central Bank has ceased to even mention the probability of the quantitative easing program. We can only hope for the two auctions of LTRO, scheduled for September and October.

Although it is doubtful that these measures will work now. Three years ago, the ECB has already used the lever of a double LTRO, but then the regulator’s rate on deposits was positive, and the banks wanted money. Now the situation is diametrically different.

Today’s statistics on the trade balance of the euro zone remained out of sight for the investors, but the data is interesting. Eurostat showed that the trade surplus rose to 16.8 billion euro (15.7 billion euro a year earlier), exports in June fell by 0.5%, while imports rose by the same 0.5%. Interestingly, there were increased exports to China, which strengthened by 10% in January-May, while exports to Russia over the same period fell by 12%.

RoboForex Analytical Department

Article By RoboForex.com

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