The Eurodollar has also seen a roller coaster ride through the course of 2018. The Euro climbed to its highest level of 1.25 against the US Dollar in nearly 3 and a half years in Quarter 1 '18. Weakness primarily from Brexit talks as well as and GDP decline has led a slight falter. Looking at a technical perspective the EUR/USD looks to be setting up camp at the 200-day Moving Average level around 1.13. It does appear that prices at this level are proving to be unstable at this level of support. There’s no doubt if it slips below 1.13 we can see the Euro slide back to levels traded before the French election- around 1.09. President Macron did note in a recent speech
“Until now, we fail to make the euro as strong as the dollar,”
…. “We made a great job during the past years but it’s not yet sufficient.”
It’s also worth noting that European Central Bank President Mario Draghi and Co. have decided to hold their benchmark rate at 0 percent. There were mentions that the ECB would be continuing their version of Quantitative Easing make net asset purchases at the new monthly pace of €15 billion until the end of December 2018. This Activity usually leads to a weaker dollar making it advantageous for trade. On the contrary, The Euro's tangential march with rising inflation continues to be under the observation. However, with protectionism making its way around the globe, current price conditions of the Euro can cause serious detriment to its economy if monetary policy measures are not in place going into next year.
“Until now, we fail to make the euro as strong as the dollar,”
…. “We made a great job during the past years but it’s not yet sufficient.”
It’s also worth noting that European Central Bank President Mario Draghi and Co. have decided to hold their benchmark rate at 0 percent. There were mentions that the ECB would be continuing their version of Quantitative Easing make net asset purchases at the new monthly pace of €15 billion until the end of December 2018. This Activity usually leads to a weaker dollar making it advantageous for trade. On the contrary, The Euro's tangential march with rising inflation continues to be under the observation. However, with protectionism making its way around the globe, current price conditions of the Euro can cause serious detriment to its economy if monetary policy measures are not in place going into next year.