Is Euro Ready to Rebound Amid Major Market Events?

US dollar dropped against euro last week after Septembers retail sales data turned out lower than market expectation, with total retail sales down by 0.3% and core retail sales down by 0.1%.

On the other hand, euro soared to its highest in 7 weeks after Britain and EU agreed on a new Brexit deal. But as the Parliament postponed Saturday‘s poll to gain more time for further discussion over details, there remains much uncertainty for UK’s withdrawal from European Union, and the market is closely observing how the pound sterling and the euro will go.

The European Central Bank announced its interest rate decision and plans for the future, while the resigning President Mario Draghi spoke at his last press conference after the ECB‘s monetary policy meeting. Christine Lagarde, appointed by ECB to succeed Mr. Draghi’s position as President, will officially assume office on November 1st.

Weak inflation and downslope trend rising from global trade tensions continue to weigh on the economy of the Eurozone, and the public holds great expectation for Ms. Lagarde. Former head of IMF, she is now the first female president in ECB‘s history and the only female among ECB’s 25 Executive Board members. ECB had tried to tackle the economic slump with a series of unconventional monetary policies, which are now eventually showing their side effects on the stability of the banking industry and the whole financial system.

Ms. Lagarde noted during a recent interview that “In face of a coming recession, Europe, particularly the Eurozone needs to do more to stabilize the economy and strengthen the foundation of development and financial security through measures such as consolidating the banking union, building a more comprehensive European securities market and improving the fiscal space shared by Eurozone members.” The market is closely following ECB‘s monetary policy package to revive Eurozone’s economy which was slowed down due to US trade policies.

As the market anticipates the next moves of ECBs new leader and the Brexit deadline is drawing near, both the GBP and EUR are likely to experience major ups and downs. WikiFX will closely follow the latest market trends and bring you more forex updates. You can view more forex news and market trends from WikiFX Newsflash.