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This week, the European currency managed to briefly strengthen its position and even encroach on the leadership, traditionally for the dollar. However, the greenback, having gathered his strength, again began the struggle for the throne in the EUR/USD pair. Experts are sure that the greenback will quickly restore the lost balance.
The relative balance in the EUR/USD pair was violated due to the disruption of the "first phase" deal, which was planned to be signed between Washington and Beijing. Recall that the United States refused to abolish all duties on Chinese goods, and China, in turn, does not consider itself obligated to buy agricultural products from American farmers. At the same time, US President Donald Trump threatened another increase in tariffs in case Beijing refuses to sign the agreement. According to experts, the new deal is more beneficial to America than China, so the solution to this issue has stalled.
The escalation of trade contradictions helps strengthen the US currency. The greenback has a powerful recharge thanks to a trade conflict between the two powers, analysts emphasize. The US economy is considered less vulnerable to a trade war and able to withstand colossal pressures. It was not very much influenced by such an event as the publication of the minutes of the meeting of the Federal Open Market Committee (FOMC) of the Fed, although the market feared unnecessarily hawkish policy of the regulator. However, the Federal Reserve decided to dwell on the issue of further rate cuts, believing that a sufficiently strong economy of the country does not require changes in current monetary policy. No change is expected in the near future, analysts emphasize.
The European currency tried to rise amid instability, but these attempts were unsuccessful. The euro put the weak data on inflation in Germany, released on Wednesday, November 20. The report said that in October this year, the German producer price index fell by 0.2% after a slight increase of 0.1% in September. Experts consider the weakness of inflation indicators to be an important problem that the ECB is facing, which had previously lowered the negative deposit rate and launched an asset buyback program.
The current problems of the euro were in the hands of the dollar. The greenback took advantage of the situation to once again strengthen. The EUR/USD pair reached a correction level of 1.1066 on Wednesday, November 20, which gave traders hope for continued growth in quotations.
The pair began with a minor note on Thursday morning, November 21, which quickly turned into a major note. The EUR/USD pair has slightly grown since yesterday, but continued to remain at around 1.1073.
In the future, the EUR/USD pair actively went up. At the moment, the pair runs in the range of 1.1079–1.1080, trying to move even higher.
According to analysts, the bulls on the EUR/USD pair have long been trading near a strong level of 1.1080 and can not overcome this barrier. In order to get things off the ground, they need to reach the psychologically important mark of 1,1100, experts said. Only having overcome this level will they be able to count on moving to 1.1200 and testing this bar.
According to experts, the US currency is confidently moving towards its goal - to maintain leadership positions and squeeze out not only the euro, but also safe haven currencies, like the yen. Currently, the greenback has managed to cope with its task, showing the market steady growth. Analysts are confident that fortune will be on the side of the dollar in the near future, which aims to win and never surrenders.
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