Ekonomické zprávy
09.11.2021

EUR/USD: Three factors to drag down the euro – Mizuho

FXStreet reports that according to economists at Mizuho Bank, in November, the euro will move bearishly on political risk, an economic slowdown, and the divergent monetary policies of the US and Europe.

“ECB president Lagarde adopted a dovish stance but the press conference was still read as more hawkish than expected. However, no members have voiced support for rate hikes, so the euro could move bearishly if premature expectations for such a move wane.”

“COVID-19 cases are growing again in the UK, Russia and other states close to the eurozone, so there is a growing risk that Europe might see a surge in cases going forward.” 

“As for coalition talks in Germany, the Social Democrats (SPD) have reached a basic agreement with the Greens and the Free Democrat Party (FDP), with formal negotiations set to take place next. Political risk could rise again if these talks make no progress. With a presidential election also looming in France next year, the euro will probably move bearishly as investors focus on political risk.”

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