On Friday, the 30th of August 2019, the euro zone currency was cracked down to its lowest level since May 15th, 2019, extending a five-day long losing streak and wrapping up the day 0.62 per cent lower to $1.0898 against its American counterpart.
While traders’ tea-table chinwags included a number of factors behind latest downswing of euro including a poor growth in the euro zone economy, a German economy under technical recession, dovish comments from next ECB chair, IMF’s Lagarde, who told earlier this week that ECB had further rooms to slash interest rate, Friday’s (August 30th) fall in euro against American dollar was mostly meaded by a sharp downward spiral in eurozone economy over the recent past.
Meanwhile, latest euro nosedive to a more than two-year low figure came forth a day after analysts of multiple US lenders including JPMorgan Chase & Co., were cautioned its clients to sway away of long-term buying position amid spurring geo—political uncertainties, while echoing the leads of Wall St.
analysts, an FX strategist of Canada-based Scotia Bank’s Scotia Capital, Shaun Osborne, wrote in a client note, “We had a quick 50-odd point drop, which seems to be month-end related. Clearly the euro has been quite soft for some time.
We touched below $1.10 earlier in August and we’ve struggled really to rebound from that point. The underlying softness that we’ve seen persist in the past month seems very much intact. ”