11.02.2019: Traders not ready to sell USD (EUR/USD, GBP/USD, USD/CHF)
European traders opened a new trading week with the same sentiment. The euro is extending weakness versus the US dollar.
The euro/dollar pair settled down at 1.1310. Experts say that the euro is vulnerable now because of the risk aversion sentiment. Investors lack confidence due to the fears about global economic growth and downbeat data from the eurozone, posted last week.
Meanwhile, the pound sterling is showing resilience to its American rival like it was trading on Friday. The pound/dollar pair is trading lower at near the level of 1.2930. Interestingly, the pair reveals prospects for a further advance despite weak GDP data from the UK.
The UK gross domestic product slowed down to 1.3% in the fourth quarter on a yearly basis from a 1.6% increase in the previous quarter, defying the forecast for expansion. Besides, economic growth eased on a quarterly basis. Industrial production slumped in December below expectations. Despite such dismal data, the sterling is struggling to assert strength against the US dollar.
Traders are closely monitoring developments around Brexit. British Premier Theresa May is going to meet her Irish counterpart, aiming to agree on the Irish border after the UK exits the EU. Theresa May insists on making amendments to the Brexit deal signed with the EU in December. The UK Prime Minister intends to avoid hard Brexit which will deal a blow to the domestic economy. In the meantime, the UK and Switzerland settled terms of a free trade without new tariffs after the UK leaves the EU.
Another European currency, the Swiss franc, is sensitive to news on relations between the US and China. The US has been again targeted by China because two US destroyers sailed near islands claimed by China in the South China Sea. Investors refrain from buying the Swiss franc. So the Swiss currency is still losing ground. The dollar/franc pair is trading at about 1.0030.
Traders are braced for another turbulent week. The Fed’s Chairman and the Bank of England Governor are due to speak tomorrow. Their remarks are sure to influence the market sentiment. Don’t miss the news of crucial importance on InstaForex TV channel! Subscribe to our channel and keep track of time-sensitive news with us!
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