{"id":159306,"date":"2019-11-07T09:04:09","date_gmt":"2019-11-07T14:04:09","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=159306"},"modified":"2019-11-07T09:04:09","modified_gmt":"2019-11-07T14:04:09","slug":"eu-economic-forecasts-slashed","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/11\/eu-economic-forecasts-slashed\/","title":{"rendered":"EU Economic Forecasts Slashed"},"content":{"rendered":"
November 7, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Dollar Down<\/strong><\/h2>\n

The US dollar has been weaker over the European morning so far on Thursday as the bullish impact from Tuesday\u2019s data beat seems to have subsided<\/strong>. A higher than expected ISM Non-Manufacturing reading boosted USD sentiment. However, with equities continuing their march higher, the impact has faded a little. USD index trades 97.73 last down from prior 97.85 highs.<\/p>\n

EU Economy To Weaken<\/strong><\/h2>\n

EURUSD has been firmer against USD today, benefiting from weakness in the greenback. The absence of key data this week has left EUR in limbo.\u00a0Today, traders received the latest set of EU economic forecasts which made for miserable reading. The EU economy is forecasted to endure a period of \u201csubdued growth\u201d and \u201cmuted inflation\u201d following the seven-year rebound just seen.<\/strong>\u00a0Nevertheless, EURUSD is in the green today, trading 1.1076 last.<\/p>\n

BOE In Focus<\/strong><\/h2>\n

GBPUSD has been higher today also, helped along by weakness in the US dollar.\u00a0In the UK, the general elections campaign is well underway and the latest polls suggest that the race between the conservative party and the labor party (main opposition) is far closer than many expected it would be.<\/strong>\u00a0The impact for Brexit of a Labour win would likely be that a second referendum could be held and Brexit could potentially be canceled. As such, traders are watching the elections update closely.\u00a0The BOE meeting today<\/a>\u00a0is the main market focus. While a rate cut is an outside chance, the market will be keen to hear the bank\u2019s latest assessment in light of the new Brexit delay. GBPUSD trades 1.2866 last.<\/strong><\/p>\n

Risk Rally Continues<\/strong><\/h2>\n

Risk assets are well supported today with equities surging higher around the globe as positive expectations for a US\/China trade deal are complimented by a backdrop of broad central bank easing across the G10 space.<\/strong>\u00a0SPX500 trades 3090.43 last, continuing to push ahead into new record highs as of writing.<\/p>\n

JPY & Gold Lower<\/strong><\/h2>\n

Safe havens have been hit today given the strong risk-on tone to trading. Both JPY and gold have moved lower against USD as equities continue to strive higher.<\/strong>\u00a0USDJPY trades 109.05 last as price moves back towards recent highs. XAUUSD trades 1485.74 last, with price sitting on the week\u2019s lows for now, though looking vulnerable to a move lower.<\/p>

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Crude Climbs Despite Bearish EIA Report<\/strong><\/h2>\n

Oil prices have been higher today despite the EIA yesterday reporting a massive surge in US crude stores. US inventories were seen higher by 7.9 million barrels last week, more than five times the market estimate.<\/strong>\u00a0However, with refined products continuing to see a drawdown, the report was not totally bearish. A backdrop of better optimism over a\u00a0potential US\/China trade deal<\/a>\u00a0is keeping crude well bid. Crude trade 57.14 last, capped by 57.78 for now.<\/p>\n

Loonie Lower<\/strong><\/h2>\n

USDCAD has had a muted session so far and is still sitting at the bottom yesterday\u2019s range following a heavy USD sell-off. With oil prices remaining buoyant,\u00a0CAD is looking better in the near term though tomorrow\u2019s unemployment data will be the main determinant of whether CAD heads next.<\/strong>\u00a0USDCAD trades 1.3163 last.<\/p>\n

AUD Holds onto Gains<\/strong><\/h2>\n

AUDUSD has been higher again today, extending yesterday\u2019s gains on the back of a weak USD.\u00a0The RBA kept rates unchanged this week and the more optimistic tone to the meeting statement has helped AUD stay supported across the week.<\/strong>\u00a0Traders now wait on the update RBA Statement on Monetary Policy (SoMP) due over tonight\u2019s Asian session. AUDUSD trades .6905 last.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Dollar Down The US dollar has been weaker over the European morning so far on Thursday as the bullish impact from Tuesday\u2019s data beat seems to have subsided. A higher than expected ISM Non-Manufacturing reading boosted USD sentiment. However, with equities continuing their march higher, the impact has faded a little. USD index […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-159306","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/159306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=159306"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/159306\/revisions"}],"predecessor-version":[{"id":159308,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/159306\/revisions\/159308"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=159306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=159306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=159306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}