Euro eases against the dollar amid fears of US-EU trade war, mid-East flare up

Euro eases against the dollar amid fears of US-EU trade war, mid-East flare up

16 Sep 2019 03:04 PM
 

The euro has kicked off the week with a slide towards $1.1050, close to its closing levels on Friday. Fears of US tariffs against the EU and the fallout from the attack on Saudi oil installations weigh.

Meanwhile, the latest escalation in geopolitical tensions in the Middle East, following an attack on Saudi Arabian refining facilities over the weekend, further benefitted the greenback's relative safe-haven status against its European counterpart and led to a subdued/range-bound price action at the start of the new trading week.

The downside, however, seemed cushioned as investors are likely to refrain from placing any aggressive bets ahead of this week's key event risk - the highly anticipated FOMC meeting on September 17-18.

The Fed is widely expected to cut interest again on Wednesday, though opinions on aggressive easing remain divided and should lead to some unusual volatility during the second half of this week's trading action.

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