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    EUR/USD: correction begins on 12.02.2016

    Today the pair EUR/USD is undergoing correction. Following 2-day speech by the US Fed President, Janet Yellen concerns of the market about the state of the world economy have increased. Mrs Yellen evaded the answer about the probability of interest rate increase in the USA in March. Although Mrs Yellen’s speech can be described as neutral, investors were worried when Janet Yellen said on Thursday that Fed considered probability of short-term introduction of the negative interest rates. Gold sharply went up, exceeding the level of 1260.00 USD per ounce. Yesterday, future quotes for gold at COMEX haves grown by 4.5% up to 1247.90 USD per ounce, the highs since February 2015. This is the highest rise in futures percentage since September 2013.

    The growing investors’ concern about the increasing instability of economic and financial conditions in the world makes investors sell risky assets, such as shares, as invest in gold, bonds and safe-haven currencies.

    Yesterday, plenty of sales took place in the American and European stock markets. Dow Jones Industrial Average fell by 1.6%, S&P500 – by 1.2%, Nasdaq Composite - by 0.4%. European index StoxxEurope 600 fell to the lows since 2013 - by 3.7%, index FTSE 100 closed with the lowest level since July 2012. Sell out of the shares triggered the rise in the pair EUR/USD, as Euro is a funding currency.

    Although pessimistic sentiments prevail in the market, the correction has begun. The rise in the American and European indices triggered the fall in the pair EUR/USD. Take profit in short positions with the USD will cause decline in the pair EUR/USD.

    Today, US retail sales data will be released (15:30 GMT 2). The decline in the retail sales volume will trigger further decline in the American indices and the USD.


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