Important events today:

US: Treasury auctions.

The single European currency ended the last week with a decline and today we can expect a continuation of the downtrend for two reasons. Firstly, the fresh statistics from S&P Global shows a strong decline in the largest eurozone economy – Germany, where the manufacturing PMI has fallen to a three-year low. The economic crisis in Germany is gaining momentum, which will encourage capital outflows from Europe as the ECB’s interest rate is 1.25 p.p. lower than in the United States.

The European economy is bursting at the seams due to expensive energy and rising ECB interest rates. European businesses have been operating for years on cheap energy and credit, and now that is gone. Second, we are seeing a downtrend in the commodities market, which is also negative for the euro as assets are correlated. The reduction of dollar liquidity surplus in the financial system due to the operations of the U.S. Treasury and the Fed has a negative effect on the value of commodity assets.

Recommendations: Sell 1.0929/1.0960 and TP 1.0848.