04.04.201916:33 Forex Analysis & Reviews: Will the Euro be able to take advantage of the positive that the US and China are creating?

The euro against the dollar remains under pressure due to the weakness of the macroeconomic indicators of the eurozone. In addition, quotes are influenced by the overall market sentiment regarding risk and the dynamics of the USD.

Traders are now optimistic about the completion of a new round of trade negotiations between Washington and Beijing.

The positive mood of investors from Asia and the eurozone suggests that they believe in the speedy resolution of trade disputes between the United States and the Middle Kingdom.

According to IMF representatives, an escalation of the conflict in the form of a rise from 10% to 25% in duties on Chinese goods from the United States would cause the global economy to slow down. In this case, America may lose about 0.3 - 0.6% of GDP, and 0.5-1.5% in China, experts say.

"Progress has been marked on almost all issues, but we have not yet reached the final result; we hope that this week will bring us closer to him, "said by the economic adviser to the US president, Larry Kudlow, on Wednesday.

Progress in the trade negotiations between Washington and Beijing has already caused the world economy to show signs of recovery. At least, this is evident in the index of purchasing managers of China. The gradual recovery of global GDP is far from the best news for a greenback.

At the same time, the Fed's unexpected rejection of plans to raise interest rates this year pushed stock prices upward, high-yield bonds and other risky assets.

As a rule, improving global risk appetite is a negative point for the US currency. In order to take advantage of the potential weakness of the "American", the euro as its main competitor, needs positive numbers from macroeconomic statistics. So far, the EUR/USD bulls can only rely on weak data on the US labor market in March, which will be published tomorrow. This will allow quotes to return to the range of 1.125-1.15.