After having gained many points in December and early January 2020, the EUR/USD is currently experiencing darker hours and continues to fall. But will this currency pair continue to drop below the 1.10 pips level? This is what we offer you to discover here thanks to some advice and our analysis of this market.
This morning, Euro traders had the unpleasant surprise to see that the currency is still trading in the red, especially against the U.S. Dollar, and continues to lose ground in the forex market.
Indeed, the single currency was still losing points during Wednesday's session and even hit a two-month low.
The market is still very concerned about the coronavirus outbreak in China, which is affecting the market as a whole, and is looking forward to the upcoming Fed meeting.
Thus, by around 10:00 this morning, the Euro had already lost 0.17% of its value against the Dollar, and was trading at $1.1003 less than an hour after already dropping to the 1.0995 level, or below 1.10 pips, which represents its lowest level since the end of November.
In the wake of this expected yet long-lasting decline, some analysts explain that safe haven stocks such as the yen, US dollar and Swiss franc are favored by traders at the moment and because of the many uncertainties that preoccupy them. It should be recalled that two airlines have already suspended their flights to China this Wednesday to avoid any contact with the place where the viral pneumonia epidemic has already made more people sick than SARS, with nearly 6,000 cases already reported.
Others also point out that there are rumours that the real figures for this epidemic and the number of victims and cases are actually much higher.
The Fed's monetary policy meeting currently taking place in the US should provide more signals to the EUR/USD for its future development. The U.S. central bank is thus expected to give the impression that it is satisfied with maintaining its monetary policy unchanged for a period of time, as some experts believe. The latter explains that the U.S. economy continues to show signs of vitality as the latest U.S. Consumer Confidence survey showed during yesterday's session the highest level since August 2019.