EUR - BEARISH 1️⃣ Eurozone growth and inflation slowing at the same time. 2️⃣ Delay of the EU Recovery Fund. 3️⃣ Resurgence of virus with further lockdown restrictions announced in Germany. 4️⃣ The ECB is expected to add additional easing in December and has a long fight with inflation to deal with.
The EUR going up is way overdue. Could you please elaborate on this: "COVID-19 vaccine optimism underpinned the AUD" Why would this boost the AUD??? Where is the connection?
MonsunAsia
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@Helena_FX, AUD is one of the high-beta currencies. Anything happens that could boost the market mood might trigger the AUD strength such as vaccine optimism.
Helena_FX
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@MonsunAsia, Well let's presume the vaccine is developed and made in Europe. Wouldn't that boost the EUR up?
MonsunAsia
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@Helena_FX, Yes, EUR can boost by the news too but given the situation in Europe right now, tighten restrictions in Germany could limit the upside. However, due to some changes in Eurozone sentiment, we have canceled the order. For today, we are looking to buy the EUR as; 1️⃣ Final Markit PMI data showed the Eurozone factory activity grew faster than initially thought in November and business confidence improved to over 2-1/2-year high. 2️⃣ Sentiment continued to be supported by signs of progress in COVID-19 vaccines, easing coronavirus restrictions across the bloc, and hopes post-Brexit trade deal could be reached this week.
Helena_FX
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@MonsunAsia, Hmmm, ok the EUR CPI (YoY) (Nov) had a negative reading today 0.3%, and the German Manufacturing PMI (Nov) also had a negative reading 57.8 compared to the previous of 57.9 so not sure where you get your information from? What is your view on the post-Brexit trade deal, if Deal agreed would that boost the EUR up and vice versa if No Deal will it bring it down? When it comes to Brexit everyone is concentrated on the GBP, why? Considering the EUR is also involved on the other side.