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Political tensions together with the dollar does not weaken

EUR / USD

In Italy, the political parties "Five star" and "League of the North" finally wrung out the coalition agreement, and now it is necessary to choose the prime minister which is a positive news for the euro. But at the same time, US President Donald Trump announced an ultimatum to the DPRK that if Pyongyang does not abandon the full and externally controlled denuclearization, the DPRK will wait for a power scenario to overthrow the government. And to begin with, Kim Jong-un should not abandon the previously scheduled meeting with Trump in Singapore. Now, investors are confused. While on Friday, the single European currency fell by 21 points.

The trade balance of the eurozone in March increased from 20.9 billion euros to 21.2 billion. But the balance of payments, on the contrary, decreased to - 32.0 billion euros against 36.8 in February. According to the US, there was no data.

Today is a holiday in Switzerland, France, Germany, Canada.

Since the opening of the Asian session, the euro is losing over 20 points and the expected correction is breaking. No macroeconomic data is published both on the euro area and the US. In the evening, Fed members Raphael Bostic and Patrick Harker will have their speeches but the topics have not been announced, which indicates their secondary importance. On Wednesday, the European and American Manufacturing PMI and Services PMI and sales of new homes in the US will be published. The overall attention was focused to political news. We are expecting for the euro in the range 1.1710 / 20. In case of occurrence of new negative events in Europe, a decrease to 1.1670 is possible.

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* The presented market analysis is informative and does not constitute a guide to the transaction.

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