EUR/USD: European Union’s main currency problems
EUR/USD: The pair stayed in the flat, as investors refrained from making big bets before the U.S. labor market data release, and it was justified. The data was quite optimistic and the markets didn’t expect such a high reading, which explains the sudden reversal, which sent EUR/USD to the low around 1.0160.
The euro is entering bearish territory again. The massive increase in the number of US non-farm payrolls in July was a kind of cherry on the cake for the dollar. There are strong indications that the Fed will continue to aggressively raise rates.
We will conduct an EUR/USD analysis. The concerns about growth in the Eurozone, energy problems and the hawkish stance of the Fed are holding back growth in the euro. In Germany, water levels in the Rhine River have dropped to their lowest since 2018 and are approaching impassibility for coal, sand, chemicals and other goods. This could affect trade, economic growth and exacerbate energy problems.
The outlook for Germany, the engine of the eurozone economy, is getting worse. Industrial production could stall because of falling water levels in the Rhine River, making navigation difficult and exacerbating supply problems. The country’s gas reserves are lower than elsewhere, so rationing gas consumption this winter remains a serious risk.
An extensive dollar correction helped the euro briefly recover, but the macroeconomic picture in the US this week suggests that the American correction time has passed. Considering the additional domestic pressure on the Euro, EUR/USD may again face the prospect of parity.
Most analysts are still of the opinion that it is too early to speak about the termination of the long-term trend of the dollar strengthening. The cycle of Fed rate hikes is far from over and will continue.
ITB (International Trading Brachium) Broker Announced Its YouTube channel
(Mahe, Seychelles-March 08, 2023) – ITB BROKER, LLC, an international forex broker, has announced that with our community growing, we believe that this will be the most effective medium to communicate with and so, we’re proud to announce the launch of ITB YouTube channel .
When a picture speaks a thousand words, How about a video?
- Throughout our community building initiative, we strongly believe in video as our means of communication. Video has played a pivotal role in describing our futuristic services to our audience and in communicating our disruptive vision to potential traders or investors.
- Over the next few weeks, we will be launching interesting videos on upcoming ITB features, bonuses, partnership or IB announcements and financial market expert interviews.
- YouTube is a great place to pick up forex trading tips and learn how to use them in the real world.
There are a number of YouTubers that make great educational videos, perfect for beginners or those considering taking up forex trading. ITB group with over 10 years of financial experience provides you with useful tips and hints of forex trading via its YouTube channel.
ITB Broker or ITBFX is a leading provider of online foreign exchange (FX) trading, CFD trading, and related services.
Founded in 2017, the company’s mission is to provide enthusiastic traders with access to the world’s largest and most liquid market by offering innovative trading tools, applying excellent trading platform, meeting strict financial standards, and striving for the best online trading experience in the market.
In addition, ITB offers educational courses on FX trading and Cryptocurrencies on academy section of ITBFX website.
U.S. budget deficit totaled $262 billion in February
According to a report from the U.S. Treasury Department, the U.S. budget deficit in February was $262,434 billion compared to a $38.8 billion deficit in January. The Dow 30 also had problems.
Analysts at DailyFX suggested that the nation’s budget deficit for February was expected to be $256 billion. A year earlier, in February, the U.S. posted a budget deficit of $216,590 billion.
According to the GAO report, U.S. government spending rose 3.5 percent year over year last month to $524.548 billion, while revenue, in contrast, declined 9.5 percent to $262,114 billion.
Earlier, the U.S. edition of the Washington Post published an editorial stating that the new draft budget proposed by the Biden administration undermines U.S. national security and its ability to invest in the future, because it suggests a further growth of the U.S. national debt.
The WP editorial board noted that the new draft budget assumes a $2 trillion budget deficit, including due to the high cost of providing health insurance to the elderly of the baby boomer generation.
Earlier we reported that the EU has agreed to reduce energy consumption by 11.7% by 2030.
The EU has agreed to reduce energy consumption by 11.7% by 2030
The European Union has agreed to reduce the bloc’s energy consumption by 11.7 percent by 2030, Reuters reported.
“This will mean a real change in favor of the climate and to the detriment of Putin,” the Danish Niels Fulsang, the European Parliament’s lead negotiator, told the agency.
Initially, in 2021, the EU proposed to reduce consumption by 9%, but in May 2022, against the background of events in Ukraine, increased the target to 13% to quickly abandon Russian energy, writes Forbes. The European Parliament considered it necessary to reduce consumption by 14%. The DAX Index also had problems.
Some EU countries have continued to insist on a 9% cut. An all-night negotiation between the EU and the European Parliament resulted in a compromise: the energy consumption of EU end-users, such as households and businesses, must be 11.7 percent lower than expected in 2030.
The agreement must pass final approval by the European Parliament and EU countries before it can become legally binding.
Earlier, we reported that consumers expect lower inflation in the eurozone, higher wages.
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