The major currency pair continues falling after the EU Economic Forecasts, the ECB Economic Bulletin, and the US Federal Reserve meeting.
EURUSD continues retreating on Friday morning. The current quote for the instrument is 1.1346.
Yesterday, the European Commission published its Economic Forecasts report, according to which the Euro Area economy may slow down this year as well as in the following ones. The reason for this is the decrease of external demand for the goods manufactured in the region. And in case the US economy “overheats” or the current “trade wars” escalate, the European economy my slow down even more.
Another report published yesterday, the ECB Economic Bulletin, says that the Euro Area GDP may increase only by 2.1% in 2018 against 2.4% in 2017. In 2019, the indictor may add only 1.9% against 2.0% expected earlier. Internal risks that may affect the region’s growth include the Italian issue and the United Kingdom’s exiting the European Union.
The November meeting of the US Federal Reserve was rather neutral, the same as expected. The benchmark rate remained at 2.25%. In the comments, the American regulator said that the future rate hike would be made based on the numbers coming from the labor market, inflation, and stable economic growth.
In general, the current market situation is in favor of the USD so far, which can be easily seen in the major currency pair movements.