{"id":11477,"date":"2019-10-14T04:00:24","date_gmt":"2019-10-14T08:00:24","guid":{"rendered":"https:\/\/currencylive.com\/?p=11477"},"modified":"2019-10-14T02:59:34","modified_gmt":"2019-10-14T06:59:34","slug":"101241-eur-usd-euro-slips-lower-vs-dollar-as-investors-digest-new-us-china-accord","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/101241-eur-usd-euro-slips-lower-vs-dollar-as-investors-digest-new-us-china-accord\/","title":{"rendered":"EUR\/USD: Euro Slips Lower vs Dollar As Investors Digest New US \u2014 China Accord"},"content":{"rendered":"

The euro advanced 0.5% across the previous week as investors cheered progress in the US \u2014 China trade talks. The pair rallied to a 4-week high of US$1.1064, before closing the week at US$1.1042. The euro is easing versus the dollar in early trade on Monday.<\/p>\n

Despite weak German data fuelling recession fears in the previous week, the euro advanced. A broad risk on sentiment boosted the common currency thanks to progress in Brexit talks and US \u2014 China trade deal developments. Investors were able to shrug off weaker data on the basis that a resolution to Brexit and the ongoing US \u2014 Sino trade dispute could prevent a euro wide economic downturn.<\/p>\n

As the new week kicks off euro traders have plenty to be watching. Firstly, any further developments in US \u2014 Chins trade relations will be eyed closely. Euro investors will also look towards EU \u2014 US trade relations as the EU makes a last ditch appal to the US to refrain from triggering retaliatory tariffs over illegal subsidies to Airbus.<\/p>\n

On the economic calendar, investors will also be looking towards the release of eurozone industrial production. Analysts predict that industrial production increase 0.3% month on month in August. The stronger reading could lift the euro, easing recession fears and fears of further monetary easing from the European Central Bank.<\/p>\n

Geopolitics Remain In Focus In Data Quiet Start To Week<\/strong><\/h3>\n

The dollar slipped lower across the previous week as improved US \u2014 China relations meant that investors were no longer seeking protection from safe havens such as the US dollar. The two economic powers met for the 13th<\/sup> round of trade talks in Washington at the end of last week. They agreed a limited trade deal. The US will hold off from raising tariffs on Chinese products this week, in exchange for some Chinese concessions. Political analysts expect the text of the deal to be finalised over the next five weeks ahead of a potential summit between Trump and Chinese President Xi Jinping in Chile.<\/p>\n

Last week the Federal Reserve released the minutes to their latest meeting. The minutes repeated the well-known messages failing to add anything new.<\/p>\n

On the data front, things look relatively quiet at the start of the week, meaning geopolitics will remain in focus. Investors will also look ahead to Wednesday\u2019s retails sales.<\/p>\n\n\n\n\n
What do these figures mean?<\/strong><\/td>\n<\/tr>\n
When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.<\/p>\n

For example, it could be written:<\/p>\n

1 EUR = 1.12829 USD<\/em><\/p>\n

Here, \u20ac1 is equivalent to approximately $1.13. This specifically measures the euro\u2019s worth against the dollar. If the U.S. dollar amount increases in this pairing, it\u2019s positive for the euro.<\/p>\n

Or, if you were looking at it the other way around:<\/p>\n

1 USD = 0.88789 EUR<\/em><\/p>\n

In this example, $1 is equivalent to approximately \u20ac0.89. This measures the U.S. dollar\u2019s worth versus the euro. If the euro number gets larger, it\u2019s good news for the dollar.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n
Why do interest rate cuts drag on a currency\u2019s value?<\/strong><\/td>\n<\/tr>\n
Interest rates are key to understanding exchange rate movements. Those who have large sums of money to invest want the highest return on their investments. Lower interest rate environments tend to offer lower yields. So, if the interest rate or at least the interest rate expectation of a country is relatively lower compared to another, then foreign investors look to pull their capital out and invest elsewhere. Large corporations and investors sell out of local currency to invest elsewhere. More local currency is available\u00a0 as the demand of that currency declines, dragging the value lower.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

This publication is provided as general information only and is not intended as an exhaustive treatment of its subject. TransferWise Inc. and its affiliates (“we” or “us”) expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of this publication, and you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from us.\u00a0 We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.<\/em><\/h6>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The euro advanced 0.5% across the previous week as investors cheered progress in the US \u2014 China trade talks. The pair rallied to a 4-week high of US$1.1064, before closing the week at US$1.1042. The euro is easing versus the dollar in early trade on Monday. Despite weak German data fuelling recession fears in the […]<\/p>\n","protected":false},"author":163946597,"featured_media":3125,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1381],"tags":[1399,1395,1393,1408,1525,1403,1400,1397,1398],"class_list":{"0":"post-11477","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eur","8":"category-usd","9":"tag-china","10":"tag-eur","11":"tag-euro","12":"tag-fed","13":"tag-industrial-production","14":"tag-trade-deal","15":"tag-trump","16":"tag-us-dollar","17":"tag-usd"},"acf":[],"yoast_head":"\nEUR\/USD: Euro Slips Lower vs Dollar As Investors Digest New US \u2014 China Accord - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/101241-eur-usd-euro-slips-lower-vs-dollar-as-investors-digest-new-us-china-accord\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101241-eur-usd-euro-slips-lower-vs-dollar-as-investors-digest-new-us-china-accord\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101241-eur-usd-euro-slips-lower-vs-dollar-as-investors-digest-new-us-china-accord\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"EUR\\\/USD: Euro Slips Lower vs Dollar As Investors Digest New US \u2014 China Accord\",\"datePublished\":\"2019-10-14T08:00:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101241-eur-usd-euro-slips-lower-vs-dollar-as-investors-digest-new-us-china-accord\\\/\"},\"wordCount\":756,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101241-eur-usd-euro-slips-lower-vs-dollar-as-investors-digest-new-us-china-accord\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100565-gbp-usd-trump-threatens-trade-tariff.jpg\",\"keywords\":[\"china\",\"eur\",\"euro\",\"fed\",\"industrial production\",\"trade deal\",\"trump\",\"us dollar\",\"usd\"],\"articleSection\":[\"EUR\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101241-eur-usd-euro-slips-lower-vs-dollar-as-investors-digest-new-us-china-accord\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101241-eur-usd-euro-slips-lower-vs-dollar-as-investors-digest-new-us-china-accord\\\/\",\"name\":\"EUR\\\/USD: Euro Slips Lower vs Dollar As Investors Digest New US \u2014 China Accord - 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