The EURUSD has been on a constant decline since it reached a most recent high at 1.13420. Failure to go past that level brought price lower again in 7 straight down days to its most recent low at 1.11434. The most recent action by the ECB to lower interest rates even further has weighed heavily on the Euro. The ECB’s lending rate is now zero percent and the deposit rate is now minus 0.40%.
The only alleviation for the Euro comes from talk of the Fed down playing their chances of hiking interest rates anytime soon. In fact, the Euro rallied after the last Federal Open Market Committee (FOMC) meeting, where the tone set during the speech was for continued surveillance of economic conditions, meaning let’s wait before taking any further action. The EURUSD went from a low of the day at 1.1057 to 1.1434 within the space of two days.
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