#forexbreakfast focus forex
Great protagonist of last week was the greenback. The dollar recovered thanks to positive macro data and a climate characterized by greater risk aversion.
The EUR / USD exchange rate after reaching above 1.20 level has reversed the trend reaching 1.18.
To weigh on this reversal was the newfound strength of the greenback and the words of the economic leader of the ECB Lane who underlined the importance of the exchange rate. The statement weighed on the exchange rate because it signals the ECB’s concerns about the excessive strength of the exchange rate of recent times.
The pound appreciated against the euro although this week the trend reversed following new fears about the no-deal. This seventh opens a new round of meetings even if the road seems uphill according to what was proposed by Boris Johnson.
The climate of risk aversion negatively impacted commodity currencies. The Australian dollar was one of the worst currencies of the week also due to the negative GDP data.
The Norwegian krone was also negative as it suffered from the drop in oil prices.
Mixed situation among emerging currencies. Latin American currencies awarded. First of all, the Brazilian real, which benefited from the climate of greater political stability and positive macro data.
The ruble has been penalized due to fears of new sanctions against Russia after the explanations requested by the international community on the poisoning of the opposition leader.
Lira is still among the worst currencies of the week. It has hit historic lows.
Eur / Usd
After hitting new highs above 1.2, the exchange lost strength to test 1.1780.
The 1.17 level is being observed, the break of which could signal a trend reversal.
Otherwise a return to 1.2 could bring the exchange rate towards 1.2080.
Eur / Gbp
Last week’s decline stopped at 0.8873. The exchange regained strength towards 0.90. The overrun could cause the exchange rate to reach 0.9149.
Eur / Yen
Last week, the exchange with the Japanese currency had a similar behavior to the Eur / Usd. It arrived at an altitude of 127 and then reversed the course. On the downside, the level to be monitored is 124.85 while the next is placed at 123.36