EUR/USD Falls Below 1.0800 Price level, Initial Gains Due to France’s Presidential Election Gets Cancelled Out

Updated:

The market continues its bearish trend, heading in the way of last week’s low of 1.0761 price level, as all its initial gains, which was caused by the result of the presidential election that took place in France gets cancelled.

EUR/USD cancels out its starting gain of about 50-pips at a price level of 1.0841, and is now heading toward last week’s low of 1.0761. The main cause of this fall in the EUR/USD market may be ascribed to Christine Lagarde’s (President of the European Central Bank (ECB)) comments that were made yesterday (Sunday).

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Major Factor and It’s Effect
Christine Lagarde disclosed during an interview that the ECB will be interfering with the buying and selling of assets, during the 3rd quarter of this year and that it is very much likely that this is done early in the 3rd quarter. After this, the ECB will then consider the interest rate and how much it can be increased.

Other ECB policymakers said that Largade’s comment killed the anticipation that the interest rate will be increased in July, as they suggested last week.

In addition, risk-off movement resumed in Asia during rising worries about the effect of the violent Federal Reserve System tightening on the American corporate sector, due to the rise in the cost of lending. The bad market composure has given support to the gain in the value of the US dollar, all over its main peers.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.