Good and bad news for the euro | 27 August 2019

27 August 2019, EUR/USD

Good and bad news for the euro

EURUSD trading plan:

Good and bad news for the euro. Investors are increasing short positions on gold which is a negative factor for the Euro as assets are correlated. Gold updated its highest in the last 6 years on Monday. Negative macroeconomic statistics from Germany may cause a sell-off of the euro. The Munich-based IFO institute said its business climate index fell to 94.3 from an upwardly revised 95.8 in July. The country's manufacturers - whose exports have been bedrock of German economic strength - are now struggling with weaker foreign demand, tariff disputes and business uncertainty linked to Britain's decision to leave the European Union. The good news is the decline in U.S. government bond yields. The 10-Year government bond yield is 1.52%, 0.605% below the Federal Reserve rate. This is a negative signal for the dollar!

Trading recommendation: range 1.1055-1.1135.

David Johnson
Analyst of «FreshForex» company
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