Take a fresh look at your lifestyle.

The euro closes 2019 with a 2% drop, but is placed on the pole for 2020

0

[ad_1]

Despite the rally of about 1% that has starred in the euro in recent days and has led the currency above $ 1.12, up to maximum of four months on December 30, the shared currency is one of the currencies of the G-10 with the worst performance in 2019. It has left 2.37% of its value this year, although the sentiment of the investors is bullish and its performance of the last weeks places it as one of the most promising currencies in 2020.

The shared currency, which turns 20 since its introduction, has been "severely penalized by Brexit and the deceleration of the community economy," says Aitor Méndez, an analyst at IG Markets. “The alteration of international trade flows as a result of the confrontation between China and the United States, coupled with the side effects of a UK abandonment of the community block that has not just taken shape, they have passed a strong bill to the German industry, a true engine of growth in the region, ”he argues.

The bleak European economic data had led to hedge funds to bet on a weaker euro during 2019, but some recent strength of the Eurozone along with the weakness in other currencies has raised the community currency and They aim to keep the muscle next year. The common currency has risen 2.7% in this quarter, a considerable but insufficient boom to eliminate this year's losses.

In addition, from the point of view of technical analysis, the currency has drawn an upward channel since October, with a clear trend of rising highs and lows, which suggests that it will remain above $ 1.12 in the coming weeks . The objective of the increases are $ 1.1412, highs of June 28.

THE LIBRA, ONE OF THE BEST OF THE YEAR

The pound, on the other hand, has not gone so badly to stop Brexit and up 3% in annual calculation. The very strong currency volatility, which has moved to the sound of divorce between London and Brussels has not taken its toll in the accumulated of 2019 and is the third currency that stands out for its evolution, after the ruble, which rises by 11.20 % against the 'greenback' in the year and the Canadian and Mexican dollars, which make it 4% against the dollar.

The British currency closes the year “with the joy of seeing that finally the elections have resulted in a governable parliament”, Highlights Méndez. While the controversial Prime Minister, Boris Johnson, was never the market favorite for his well-known Euroscepticism, "the fact that he has enough parliamentary support to end all the uncertainty surrounding the process of leaving the United Kingdom for the European Union has allowed the British currency to bounce against its US counterpart, ”explains the IG Markets expert.

WINNERS AND LOSERS

As for the dollar, it points to its worst annual close since 2013, after the index that measures its performance against a basket of six rival currencies has reached a minimum of six months. The annual variation of the greenback is 0.7%.

But there are coins that have had even worse. The Swedish krona and the Brazilian real have depreciated about 5.5% and 4.1% against the US currency, respectively, but in the section of the worst currencies it stands out the Argentine peso, which has been devalued by 60% for the return of Peronism to power.

.

[ad_2]

Leave A Reply

Your email address will not be published.