As financial markets come to terms with the end of cheap money being injected into the system, get updated with the 14 November EURUSD Fundamental Outlook.
14 November, OctaFX – The EURUSD currency pair edged higher on Monday, notwithstanding news that the European Investment bank saw a decline in lending volume due to the Brexit. The ECB’s Constancio recognizes the need for patience and persistence for the Euro recovery to take hold.
European Investment Bank Hoyer
Remember, Mario Draghi has recommended that the ECB would extend quantitative easing, although at lower levels. Nevertheless, lately we have seen a lot of difficulties passing tax bills in the U.S. Congress, and that is actually what is going on right now, the dollar is being penalized for that.
The European Investment Bank would most probably encounter a reduction in lending volume based on Brexit. The President of the European Investment Bank (EIB) Hoyer warned in an interview with Boersen-Zeitung that if other EU member states don’t replace the U.K.’s capital share of 16% the maximum lending capacity of the bank could drop by as much as EUR 100 bln.
Hoyer said, nevertheless, that a cash infusion is not required and that it would be sufficient to transfer a small part of the bank reserves will be transferred to equity.
14 November EURUSD Fundamental Outlook
The euro advanced sharply at the start of the week, with the EUR/USD approaching 1.1700 for the first time since late October. The pair faces immediate resistance at 1.1690, a region of prime selling interest. On the opposite side of the ledger, immediate support is located at 1.1620.
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