What Drove EUR/USD to a Fresh 2-Year Low?

There are 2 main reasons for the euro’s weakness and the first is risk aversion. Weak economic data and pessimistic comments from the central banks of Europe have made investors extremely nervous about the outlook for the global economy. For this reason, every piece of bad news, including today’s non-farm payrolls report has made investors more risk averse.

 

The second reason why the EUR/USD experienced such a large decline is because investors believe that the ECB will expand its balance sheet at a faster pace than the Federal Reserve. In plain English, this means that they expect the ECB to be more aggressive than the Fed in easing monetary policy. 

 

http://www.bkassetmanagement.com/featured/what-drove-eurusd-to-a-fresh-2-year-low/

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Comments

  • been tracking that downtrend all last week

    30 min data

    that purple is gotta get taken out for markets to think about rallying...imho

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