A decline and a swift correction – such was a dynamic of EUR/USD couple today. In the morning traders were waiting for another report from Germany – Ifo Business Climate which is a report deemed a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.
When the report was dropped, so was the chart, but here we have to understate that even though right now the couple is on a recovery all of it happens during the overall downtrend. Euro has not been doing fine for the last several months. German and French economic data are far from optimal and concerns around region’s health and wealth are growing. Will euro be able to withstand the pressure from Brexit? Will new coronavirus influence its price against the greenback? When will euro be able to recover?
All of these questions are worrying us as traders and for sure we are selling the currency off, prompting its chart to fall. Such is the present situation surrounding the couple.
Will it change soon? Well, only if we have the possibility to rest from reports and additional information and just trade it. Otherwise there are some tough times ahead for EUR/USD.
Tough times are always better and easier with trading signals.