empty
en
Support
Instant account opening
Trading Platform
Deposit/Withdraw

10.05.201912:06 Forex Analysis & Reviews: Euro is preparing for the second week of growth, trade conflict supports the currency

Long-term review

Exchange Rates 10.05.2019 analysis

The unexpected increase in tariffs on Chinese imports has radically changed the near future of the euro. The currency is preparing to grow for the second week in a row amid concerns that any escalation of the trade conflict between the United States and China will force the Fed to lower interest rates. D. Trump raised tariffs from 10% to 25%, and Beijing said it would strike back. Both sides are conducting the final round of negotiations in an attempt to save a bargain.

Investors, meanwhile, believe that the conflict will inevitably lead to a decrease in the interest rate in the United States. Before that, the markets were betting on one rate increase by the end of 2019. China's counter-measures, although not as large-scale, will still affect the prospects for the US economy and increase the chances of a Fed rate cut, especially since the Fed now has more opportunities to soften policies than most other central banks, and this will ultimately lead to depreciation of the dollar against the euro and the yen.

Exchange Rates 10.05.2019 analysis

The single European currency rose by 0.1%, to 1.1220 dollars, and has been growing for the second week in a row. Overall, the risk appetite was muted, although some of the high-yielding currencies, such as the Australian dollar, which fell at the beginning of this week, rose after D. Trump's statement. So far, trading tensions have little effect on currency markets: asylum assets, such as the Japanese yen, added only 1.2% this week, and volatility indicators on the currency market were suppressed, despite a slight rebound.

Irina Maksimova,
Analytical expert of InstaSpot
© 2007-2025
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaSpot analytical reviews will make you fully aware of market trends! Being an InstaSpot client, you are provided with a large number of free services for efficient trading.

See Also

Forex News
  • 2025-04-03 04:20:33
    Oil Prices Tick Higher Amid Trade Uncertainty and Supply Concerns
    2025-04-03 04:20:33
    US Stocks Gain Ground as Investors Eye Trump’s Trade Policy
    2025-04-03 04:20:33
    Brazil's Foreign Exchange Flows Show Marked Improvement in April
    2025-04-03 04:20:33
    DAX Ends in the Red
    2025-04-03 04:20:33
    Russia Unemployment Unchanged at 2.4%, Above Forecast
    2025-04-03 04:20:33
    European Stocks Fall Ahead Fresh US Tariff
    2025-04-03 04:20:33
    UK Stocks End Slightly Lower
    2025-04-03 04:20:33
    TSX Rebounds
    2025-04-03 04:20:33
    US Stocks Steady Ahead of Tariff Announcement
    2025-04-03 04:20:33
    Colombia Exports Fall in February
  • 2025-04-03 04:20:33
    Offshore Yuan Falls on Trump's Aggressive Tariffs
    2025-04-03 04:20:33
    China Stocks Slip as Trump Raises Tariffs
    2025-04-03 04:20:33
    China's Services Sector Gains Momentum in March with Caixin PMI Increase
    2025-04-03 04:20:33
    US 10-Year Treasury Yield Hits 5-1/2 Moth Low
    2025-04-03 04:20:33
    Japanese Yen Rallies Amid Trade War Concerns
    2025-04-03 04:20:33
    Japanese Yen Rises as U.S. Tariff Plans Stoke Trade War Fears
    2025-04-03 04:20:33
    KOSPI Hits 2-Month Low on US Tariff Shock
    2025-04-03 04:20:33
    Australian Dollar Steady as Canberra Downplays U.S. Tariffs Impact
    2025-04-03 04:20:33
    Singapore Private Sector Growth at 4-Month High
    2025-04-03 04:20:33
    Japan Services PMI Revised Higher
  • 2025-04-03 04:20:33
    Oil Sinks Around 3%
    2025-04-03 04:20:33
    Australia Exports Hit 5-Month Low
    2025-04-03 04:20:33
    Japan Composite PMI Revised Upward
    2025-04-03 04:20:33
    Copper Prices Slide Amid Trump’s Reciprocal Tariffs
    2025-04-03 04:20:33
    Australia Imports Hit Record Peak
    2025-04-03 04:20:33
    Australia Trade Surplus Smallest Since 2020
    2025-04-03 04:20:33
    Australia's Imports Surge 1.6% in February, Rebounding from January's Decline
    2025-04-03 04:20:33
    Australia's Exports Take a Significant Dip in February: A Decline of 3.6%
    2025-04-03 04:20:33
    Hong Kong's Manufacturing Sector Weakens as PMI Slips to 48.3 in March
    2025-04-03 04:20:33
    Japanese Shares Sink as Trump Unveils Tariffs
  • 2025-04-03 04:20:33
    Australian Shares Slide Amid Trump Tariffs
    2025-04-03 04:20:33
    Irish Services Growth Hits 3-Month High
    2025-04-03 04:20:33
    Ireland’s Service Sector Gains Momentum with March PMI Rise
    2025-04-03 04:20:33
    New Zealand's Commodity Price Index Dips by 0.4% as Agricultural Exports Feel the Pinch
    2025-04-03 04:20:33
    Gold Hits Another Record
    2025-04-03 04:20:33
    Japan's Foreign Investment Influx Rebounds, But Challenges Persist
    2025-04-03 04:20:33
    Japan Sees Dramatic Improvement in Foreign Bonds Buying as Deficit Narrows Significantly
    2025-04-03 04:20:33
    US Futures Plunge on Sweeping Tariffs
    2025-04-03 04:20:33
    New Zealand Stocks Drop After Trump's Tariffs
    2025-04-03 04:20:33
    Australia Private Sector Expands for 6th Straight Month in March
  • 2025-04-03 04:20:33
    Australia Services PMI Continues to Expand in March
    2025-04-03 04:20:33
    Australia's Service Sector Displays Resilience: Judo Bank Services PMI Rises to 51.6 in March
    2025-04-03 04:20:33
    Brazilian Real Resilient Amid US Tariff Rollout
    2025-04-03 04:20:33
    South Korea Forex Reserves Edge Up in March
    2025-04-03 04:20:33
    Mexican Peso Appreciates on Less Severe US Tariffs
    2025-04-03 04:20:33
    South Korea's FX Reserves Edge Up Slightly in March to $409.66 Billion
    2025-04-03 04:20:33
    DXY Dips As Trump Imposes Tariffs
    2025-04-03 04:20:33
    US 10-Year Bond Yield Rise as Markets React to Trump’s Tariff Announcement
    2025-04-03 04:20:33
    Ibovespa Closes Flat
    2025-04-03 04:20:33
    Wall Street Closes Higher Ahead of Tariff Announcement
  • 2025-04-03 04:20:33
    Oil Prices Tick Higher Amid Trade Uncertainty and Supply Concerns
    2025-04-03 04:20:33
    US Stocks Gain Ground as Investors Eye Trump’s Trade Policy
    2025-04-03 04:20:33
    Brazil's Foreign Exchange Flows Show Marked Improvement in April
    2025-04-03 04:20:33
    DAX Ends in the Red
    2025-04-03 04:20:33
    Russia Unemployment Unchanged at 2.4%, Above Forecast
    2025-04-03 04:20:33
    European Stocks Fall Ahead Fresh US Tariff
    2025-04-03 04:20:33
    UK Stocks End Slightly Lower
    2025-04-03 04:20:33
    TSX Rebounds
    2025-04-03 04:20:33
    US Stocks Steady Ahead of Tariff Announcement
    2025-04-03 04:20:33
    Colombia Exports Fall in February
  • 2025-04-03 04:20:33
    Offshore Yuan Falls on Trump's Aggressive Tariffs
    2025-04-03 04:20:33
    China Stocks Slip as Trump Raises Tariffs
    2025-04-03 04:20:33
    China's Services Sector Gains Momentum in March with Caixin PMI Increase
    2025-04-03 04:20:33
    US 10-Year Treasury Yield Hits 5-1/2 Moth Low
    2025-04-03 04:20:33
    Japanese Yen Rallies Amid Trade War Concerns
    2025-04-03 04:20:33
    Japanese Yen Rises as U.S. Tariff Plans Stoke Trade War Fears
    2025-04-03 04:20:33
    KOSPI Hits 2-Month Low on US Tariff Shock
    2025-04-03 04:20:33
    Australian Dollar Steady as Canberra Downplays U.S. Tariffs Impact
    2025-04-03 04:20:33
    Singapore Private Sector Growth at 4-Month High
    2025-04-03 04:20:33
    Japan Services PMI Revised Higher
Can't speak right now?
Ask your question in the chat.
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaSpot anyway.

We are sorry for any inconvenience caused by this message.