the daily chartist

EUR/USD Recap for 15.09.2015

published 6 years ago

 For the euro things went south too. The price opened at 1.13159, made a high of 1.13282 and then it dropped to 1.12583 for 57 pips and closed the day at 1.12687. The reason? ZEW! German ZEW Economic Sentiment. Came quite bad at 12.1 from forecast of 18.3 and in previous value of 25.0. ZEW Economics Sentiment came also in disappointing numbers at 3.33 from forecast of 42.1 and previous 47.6. After that, even the positive Employment Change and Trade Balance didn't stopped the euro downfall. The cause of the negative Sentiments is hold by the caution that the weakening economic development in Emerging Markets dampens the economic outlook for Germany's export-oriented economy. While economic growth in the second quarter was largely driven by external demand, it is becoming less likely that exports will stimulate growth in the near future. So it seems that the situation in the Emerging Markets will be a major changer in the string export-oriented economy's as Japan. Remember that Kuroda's tactic now is to wait-and-see if actually the offshore situation and in EMs get better before he takes preventive actions and changes in BOJ's policy. Which is a wise move, because a rush action may cause a very negative effect on their goal of helping their exports grow - which again is under the influence of EMs and the US of course. Dollar is overall still dominant and it will stay like this until Thursday. I actually think that if they set steady the rate at 0.25 unchanged the Dollar will explode higher actually, than, if they make a hike and the Dollar will go down hard. Time will tell. Thursday's events will tell.