The Euro currency is about to send its worst week this year, after the victory of Donald Trump on presidential election in the United States, which raised concerns among investors rise of populists in Europe. The markets in the euro zone are facing a potentially turbulent period before the constitution change in Italy, elections in France, Germany, the Netherlands and probably Bulgaria. The ruling parties in these countries could suffer serious damage in the vote, which will change the economic policies.
The circumstances during the week led to increased of investor’s interest in the Swiss franc, which was recognized as a safe haven currency. The franc rose on Friday to its highest level against the Euro since June and reached an exchange rate of 1.0721.
The European single currency is directed to a weekly decline of 2.4% against the US dollar, as well as its worst week against the British pound since July. The EUR/USD exchange rate dropped to 1.0869, which continue to close the pair to parity, expected by many finance analysts and experts in 2017.
The Euro is subject to pressure because of the focus on short-term political events. The victory of Trump raised concerns that you may see similar results in elections in Europe, commented analysts. The prices are stalling within a hair of support and the available is trading range is too narrow relative to recent volatility (as measured by ATR) to justify taking a trade now from a risk/reward perspective. Opting for the sidelines until a more attractive opportunity presents itself seems most prudent.
more recommended stories
How Do You Know When You Can Buy Equifax?
Wall Street has the most inane.
Jamie Dimon: Bitcoin is Stupid
Jamie Dimon is not someone who.
Separating Your Politics From Investing
Investing is a contrarian game. The.
Exor Shares Not Reflecting the Run-Up in Fiat Chrysler
Exor, the holding company for the.
Eight Years Into A Bull Market: How Much Longer Do We Have?
An amusing video has recently made.
Gas Prices Set for Temporary Rise
The battering of the U.S. Gulf.
IEA Sees Rebalancing Oil Market
In a report released today, the.
Dow Crosses 22,000
Markets continue moving higher.
Weak Peso Worries Argentina
The sudden devaluation of the peso.
Coca-Cola’s Earnings Exceed Expectations
Challenged by shifting consumer tastes away.