Last week, the euro looked very, very strong, updating the multi-year peaks combined with the ruble. The new Monday started for the currency with a decline, but the emotional market means little. How will the euro continue to behave? Read about it in a new review.
Economic analysis of the euro area
Individual euro area countries have implemented a system of so-called ‘soft blockade’ – primarily Germany and France. In France, among other things, the curfew was restored amid the deteriorating situation with the coronavirus. Mr Weidmann, a former representative of the European Central Bank, is convinced that the effects of the declines will now be less visible than in spring 2020. He believes that it is worth taking into account the cost of housing occupied by landlords when calculating inflation, so the system will be more understandable. At the ECB, according to Weidmann, focusing on monetary policy does not mean pursuing fiscal policy interests, everyone should do their own thing.
Important statistics from the euro area last week and it was not – the world followed the situation with the US election and analyzed US employment sector statistics.
Russia Economic analysis
Consumption prices in Russia in October this year increased by 0.4% after an increase of 0.1% in September. From January to October, inflation in Russia was 2.4%. Annual inflation is currently estimated at 4% compared to 3.7% previously. Food products have made a significant contribution to price increases, possibly due to the increase in import prices in the context of exchange rate fluctuations.
Euro exchange rate forecast for the week 9-13.11.2020 10111
While the euro exchange rate has come under local pressure, but this is not a long-term stress: the market is now too emotional and the ruble remains essentially weak, regardless of who is leading the US. So, after a while, the pitching is over, and the exchange rates will return to their equilibrium value. The euro can fall to 90.20 rubles, but later it will return to the commercial corridor of 91-93 rubles, where now and place.