#ForexChief #Fed #forexnews #ECB #Lagarde #FundamentalFactors #stock #worldnews #Macron #MarineLePen ⠀
⚠️ Fog and cold: what is happening with the euro?⠀
🔥 Pockets of geopolitical instability, the aggressive policy of Fed and the French elections again spoiled the mood of European currency. The first round of presidential election did not bring Macron a global advantage, and then he will have to fight the same rival as four years ago − Marine Le Pen. This fact did not add optimism to the euro.
⠀
The passive position of ECB, risk of stagflation and the looming energy crisis − are all these fundamental factors that play against the euro. In addition to the ban on goods from the Russian Federation, EU is trying to completely abandon the supply of Russian coal − existing coal contracts must be terminated before the beginning of August, and new transactions are already prohibited.
⠀
How European industry will cope with such restrictions and how this will affect the competitiveness of European goods, for example, with Chinese goods, politicians are not yet worried. Problem of compensation for energy raw materials for Europe has not yet been resolved, although the import of oil and gas from the Russian Federation is still preserved.
⠀
Meanwhile, the European information background and statistics remain negative. Retail sales growth has slowed from 8.4% to 5.0%, with consumer activity, considered the main driver of the economy, also faring poorly. In March, the decline in consumer activity in Europe will be even stronger.
⠀
Let's see what ECB can offer under these conditions − tomorrow we are listening carefully to Lagarde. But if we don’t hear anything new, then we can continue to sell.
⠀
Profits to y’all!