European Market Refresh Three Weeks Low, The Market To Retain Or Let Go Of The Euro?

The euro tumbled against the US dollar, a three week low of 1.0983 in the European market, boosting the attractiveness of the US dollar due to the recent warming of US economic data. But will the market sell-off on the euro come as scheduled?

Overnight, the US housing market is beautiful, coupled with the recovery of the US core CPI. retail Growth and non-agricultural employment growth soared, and the market began to improve pessimism about the Fed's interest rate hike. This puts pressure on non US currencies.

However, the euro did not continue to weaken after falling to the 1.0980 line, showing investors cautious attitude before the ECB resolution on Thursday. This may also mean that the euro's short term decline has limited space and will continue to maintain a concussion.

Reuters latest survey shows that Europe The central bank will maintain interest rate and debt purchase scale unchanged at the July meeting; it is estimated that the euro zone GDP growth forecast in 2017 will be revised from 1.6% to 1.3%; the French and Italy GDP growth forecasts will also be revised; the inflation forecast for the euro zone in 2016 and 2017 will remain unchanged at 0.3% and 1.3% respectively.

The ECB's monetary policy remains unchanged on Thursday. The key is Europe. Central Bank When President Delaki conveyed the signals to the market at a press conference, if the implication is that interest rates will be cut and expanded in September, the euro will not be much better before the September resolution.

On the technical side, the euro began to pick up after falling to the 1.0980 line, and the RSI index also rose to a low level, indicating that the downward pressure on the short term has weakened, while the euro zone has remained unchanged. The low of 1.0912 in June 24th also constitutes a strong support for the exchange rate.