EURUSD H4 05 06 2020 1738

The single currency continues to move lower after the German Constitutional Court ruled on Tuesday that the ECB’s bond buying scheme (QE) was not balanced and gave the central bank three months to prove that the QE program was ‘proportionate’ otherwise the Bundesbank may pull out of the program. Subsequent commentary from the President of the Bundesbank Jens Weidmann that he would support the ECB in their efforts to meet this requirement calmed the situation but if the market sees any fractures within the EU, the Euro will come under increasing pressure.
Tuesday’s EUR/USD sell-off continues this morning after data showed German Factory orders slumping in March. According to the Federal Statistical Office (Destatis), the real (price-adjusted) order intake in March 2020 was 15.6% lower than in February 2020, seasonally and calendar-adjusted, the largest decrease since the beginning of the time series in January 1991.Compared to February, domestic orders fell 14.8%, international orders slumped 16.1% and orders from the Euro-Zone fell by 17.9%.

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