EUR/USD forecast for November 19, 2020
As we talked about in previous analyzes about the resistance at 1.18750-1.18800 euro again failed to break above this level. The pullback has already fallen below the Fibonacci level of 23.6% and looking at the EUR/USD chart, it will continue today in that direction, so a drop below 1.18000 is possible.
The President of the ECB, Christine Lagarde, commented that it was Eurozone economic activity lost momentum in the fourth quarter.The resurgence of virus cases, in particular, puts pressure on the service sector. The eurozone economy is expected to be seriously affected by the rapid growth of infections in all European countries.
Expects core inflation to remain in negative territory until early 2021 and for the ECB to maintain favorable conditions for as long as it takes to support business and credit.
Lagarde also notes that PEPP and TLTRO are likely to remain the central bank’s primary tools.
This continues to confirm market expectations that the rate cut is unlikely to be part of a “recalibration” to be held at next month’s meeting.
The eurozone faces the risk of another economic downturn with the second wave of coronavirus acceleration across the currency bloc.
Consumer prices are already falling in a worrying sign for the European Central Bank, which is already pursuing an ultra-flexible policy. A budget deal would ease pressure on the ECB to do more easing and likely raise inflation expectations, boosting demand for the euro.
This afternoon during the American session is full of essential economic news. From them, we can single out the negative Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week, The Philadelphia Federal Reserve Manufacturing Index rates, and Existing Home Sales measures.
This will probably affect the dollar itself, and thus the currency pair EU /USD.
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