European currencies are again in their eternal confrontation, but the dollar is not trying to crush the euro. At the same time, the greenback cannot enjoy the taste of victory, because his opponent, who had previously been actively fighting for the championship in the EUR / USD pair, shows signs of fatigue.
According to analysts, the apathy of the European currency is caused by the general fatigue of world markets. It is provoked by a number of factors, among which are the fatigue of investors and traders from protracted trade negotiations both between China and the United States, and about Brexit. Experts do not exclude that the market will continue to move towards constantly low volatility. A marked reduction in volatility is inherent in the single currency, especially in the EUR/USD pair.
Economists record not only the widespread fatigue of the financial market, but also a significant narrowing of trading ranges in most currency pairs, in the classic EUR/USD in particular. This is expressed in the fall of the pair's quotes. The EUR/USD pair was trading in the low range of 1,1008–1,1009 on Thursday morning, November 28, occasionally making attempts to rise higher. A day earlier, the pair fell to 1.1000 and below, but then slightly gained momentum.
The EUR/USD pair fell to 1.1006 on Thursday, which confirms the thesis of fatigue. The euro hardly reacted to timid attempts to rise, and the dollar tried to pull the pair out of its efforts.
Against this apathetic background, the US currency feels more confident than ever. On Wednesday evening, November 27, exchange markets gave the greenback a green light, which it did not fail to take advantage of. The dollar was actively playing in the green zone, strengthening its position due to good macro statistics from the US. According to analysts, these data put an end to the issue of further Fed rate cuts.
Analyzing the current state of the market and the dynamics of the EUR/USD pair, experts believe that both risks and high volatility will return to the markets in the near future. This is especially true for key currency pairs. Risks that could spur the movement in major pairs include the US elections in November 2020, the upcoming December elections in the UK, and the possible conclusion of a trade agreement between Washington and Beijing. Experts do not exclude that the current period of lull may drag out, and then abruptly give way to an explosion of volatility.