The Euro has broke below 1.10 against the Dollar, representing the lowest level in the EURUSD since May 2017 in a move that we have been anticipating since the beginning of the second half of 2019.
As written here between the threats of tariffs being imposed on Europe from the United States, fears of an upcoming recession to strike the world economy, the German economy already contracting in Q2 plus a host of other reasons there has been no motive to consider becoming a long-term purchaser of the Euro.
And if you are, this is likely because of the understanding that the patience of President Trump towards a weaker Euro, and in turn, a stronger USD has worn thin (check out his twitter for more). Essentially the President is calling for a weaker Dollar and if the Greenback turns weaker, this promotes strength in the Euro.
In the meantime and while the EURUSD stays below 1.10, expect for expectations to rise substantially that the Euro can decline all the way towards 1.06 over the coming months for as long as the pair does not cross back above 1.10 (invalidating this outlook)
Near-term opportunities include exploring bearish positions on both the EURGBP and EURJPY, where the EURJPY is down more than 100 pips today at time of writing.
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