Forex

Euro tries to recover from 2-week low ahead of key European data

2019-08-19 11:16:37 GMT (Economies.com)

Euro rose against a basket of currencies today, trying to recover from a 2-week low against US dollar, to notch its first gain in the last 5 days, on investors' aversion from high-yielding currencies, ahead of the US decision about the Chinese company Huawei, and the release of July's inflation data in Europe.

 

EUR/USD rose by about 0.15% to $1.1107, from the opening of $1.1092, with a low of $1.1087.

 

Euro fell by 0.15% against dollar on Friday, in its fourth consecutive daily loss, hitting a 2-week low at $1.1066, on recession fears over the European and German economies during the third quarter of this year.

 

During last week, Euro shed 1% against dollar, its fourth weekly loss in the last five weeks, as market's bets increased for the ECB to cut interest rates after weak data.

 

Markets are anticipating the US decision today on allowing Huawei to buy supplies from US companies.

 

As the market's sentiment and risk appetite will improve if the US allowed Huawei, which will pave the way for US-China trade agreement.

 

Investors are also anticipating important European inflation data, with the final reading of July's consumer prices, and in case of weak data market's bets will be boosted for the European Central Bank to cut interest rates during its September meeting.

 

At 09:00 GMT, the final reading for the European CPI is expected to rise by 1.1% compared to 1.3% in June, while the core reading (excluding food and fuel products) is expected to rise by 0.9% compared to 1.1%

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