Hello koala king and folks.
Good day to you.
IMF due to slowing economic growth in developing countries and emerging economies and the economic slowdown in Europe, cut its forecast of global economic growth. IMF estimated a growth of two percent for Japan and America’s economic growth to 1.7 percent this year. However it predicts growth in the euro zone economy to be of a negative evaluation. According to the IMF, the euro area member states growth for the year will clock a negative growth of 0.6 percent.
China’s exports in June fell for the first time in seventeen months. Exports from the second largest economy in the world, has dropped 3.1 percent last month. An economic expert says that it is not surprising and in the coming months, China would face slowing export growth. China had a remarkable economic growth in recent years but maintaining this growth rate is not always possible.
First round of trade negotiations between the United States of America and the Union of Europe ended on Friday in Washington. The second round of negotiations for the acquisition of commercial agreements would be held in October in Brussels. Taxes, tariffs, duty and legal and other barriers to trade in goods and services and investment issues between America and Europe Union, including any issues between the two sides are on the negotiation table. If free trade negotiations between America and Europe Union successfully finish, the new agreement called the Trans-Atlantic bilateral trade pact will be the world’s largest. The contract signed between Europe and America may put pressure on China. In a situation in which current economic growth slowed, a number of investors are worried about a hard landing for China’s economy.
Technical perspective: As you can see in the above picture, at the beginning of the week the EUR/USD was trying to get out of the bottom side of the triangle which was not successful. Given the circumstances, I believe the EUR/USD this week may be strengthened.
Have a nice time.