The currency pair EUR / USD was able to attract buyers near the mark of 1.1280 and is attempting to recover to 1.13.
It should be recognized that, at present, the euro is receiving support mainly due to expectations regarding the postponement of Brexit, since the eurozone also has something to lose if there is an unregulated exit of the UK from the EU.
At the same time, the US currency was under pressure due to the release of weak data on inflation in the US for February, which was published yesterday, and also because of the decline in yield of treasuries.
According to a number of analysts, despite all the negative, it is premature to talk about a trend reversal towards strengthening the greenback, since the case of its main competitor, the euro, is far from the best.
Fundamental factors still play against the single European currency. While the ECB announces its intention to launch new monetary incentives and keep the interest rate unchanged, at least until the end of this year, the Fed is still withdrawing dollar liquidity from the system, and all statements by the regulator about the termination of the balance normalization program in practice remain words.
It is not excluded that the stimulating policy of the European Central Bank contributes to the weakening of the euro to a greater extent than the pause in the process of raising interest rates in the United States justifies the reduction of the "American".
"According to our estimates, in the short term, the EUR / USD pair may fall below the level of 1.12, after which it stabilizes in the medium-term horizon in the region of 1.12-1.16. In the next six months, the pair is unlikely to break through the upper limit of this range, and any attempts to do this will most likely be associated with an improvement in the economic situation in China," noted Danske Bank experts.
The material has been provided by InstaForex Company - www.instaforex.com