EUR/USD at 1.1167. European stocks plummeted.

EUR/USD closed the European session at 1.1167, up 0.06%, noting that it sharply dropped to 1.1086 level at afternoon, but rebounded at the end of the session. Shaun Osborne from Scotiabank reported a bearish outlook for the currency pair, forecasting a target of 1.0980 in short-term.

European stocks tumbled today, mainly driven by banking sector. The major indices performed the following way:

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  • FTSE 100 dropped 2.71%, closing at 5,689.36.
  • CAC 40 finished at 4,066.31, losing 3.20%.
  • Euro Stoxx 50 was trading at 2,785.17 as of 5:50 PM GMT, which is 3.27% lower than the previous close.

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According to Peter Garnry from Saxo Bank, the current situation for European banks is difficult. He was not sure whether the banks could cover their cost of equity, a fact that makes banks unattractive investment for long-term investors.

Oil prices fell during European session either. As of 12:01 ET the WTI Crude was trading at 30.31 USD/bbl, down 1.88% and Brent Crude at 33.56 USD/bbl, which was 1.47% below than the previous close. The prices declined after talks between Saudi Arabia and Venezuela failed to show any signs of an agreement on production cut.

Terry Sandven, the chief equity strategist at U.S. Bank Wealth Management in Minneapolis reported that the oil prices have to stabilize in order to increase the investors’ confidence, as the investors’ stress is high, earnings visibility is low, and market intervals continue to decline.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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