The euro constrains geopolitics
The euro began the new week in the area of $ 1.34. USA, this is the course developed at 8:30 MSK. Global markets continue to pay attention to geopolitical news that negate the positive effects of a number of earnings reports and economic data, said the deputy head of the analytical department of the bank “Zenith” Vladimir Evstifeev.According to expert FG BCS Ivan Kopeikin, the European currency after the ECB meeting last week has risen expected. Recall, the regulator has not yet become ease monetary policy and run additional incentive programs. Against this background, the euro / dollar has strengthened in the area of $ 1.34. USA last week and now consolidated in anticipation of the new drivers. In this case, the potential for strengthening the euro has kept, but a bit alarming statistics in the region. In particular, Germany’s trade balance fell in June to 16.2 billion euros from 18.8 billion a month earlier. Near the strong resistance of the pair is located in the 1,347, support – 1,335.
One of the main leitmotifs ECB President was mention of strengthening the role of geopolitics to the financial markets and the economy. According to Mario Draghi, the deterioration of the geopolitical conditions in these regions could potentially have a negative impact on the euro-zone economy. In general, the head of the ECB statements rhetoric has not changed significantly, says V.Evstifeev: Following the meeting, the regulator, which did not give surprises to investors in respect of monetary policy has been paying special attention to foreign policy issues in developing economies. Preparing for the introduction of buyback programs continues, with long-term inflation expectations have remained stable, but for a “long time” it will remain significantly below the target level of 2.0%. “
In the United States last week was published weekly statistics on the labor market. The number of initial claims for unemployment benefits unexpectedly fell by 14 thousand. – Up to 293 thousand., Which is the lowest since the beginning of 2006. Markets are expected to see an average increase of 2 thousand. Despite the relatively favorable conditions in the global markets, investors do not see prospects for upside risk assets. Fears for the sharp increase in geopolitical tensions, which could hurt the global economic recovery, so far they have not conducive to the resumption of purchases.
