EURUSD prices at critic 1.12 level

Euro and dollar comparison. Golden euro and dollar symbols on scales. - Görsel
EURUSD prices at critic 1.12 level

As the risks related to the Eurozone economy continues, the Euro currency has lost value against the dollar. The ongoing uncertainties regarding the Brexit agreement, which is considered a major risk factor for the Eurozone, the UK’s departure from the region, poses a risk to the country’s economy. In addition, Italy’s budget deficit problem, another risk for the Eurozone, is one of the reasons leading to a weak picture of the economic outlook of all member states. According to a statement from Italy today, it was noteworthy that Italy said it was not facing a risk of leaving the Eurozone. In the country’s monetary policy meetings, accompanied by ECB President Draghi, continued inflation risks were addressed. When we look at the U.S. side, President Trump’s statements increased the political tension, while the country’s economy performed well than expectations in the first quarter. While the U.S. companies Q1 earnings showed a positive outlook, the dollar assets remain strong due to the elimination of interest rate cuts by the Fed. After all these developments, the EUR/USD parity priced in the downward channel is below the moving averages. In particular, we see that the level of 1.12 pushed the pair several times as the holding point.