FX.co ★ The euro is having a difficult time: where to find incentives for growth?

The European currency is going through tough times. Last week did not bring "Euro's" active growth in contrast to the dollar and the pound. At the moment, the euro is trying to find a foothold, from which it can push off and start the upward movement, analysts say.

The search for growth drivers for the single currency is complicated on the situation in the UK financial field. The victory of the Conservative Party, led by Boris Johnson, did not contribute to the dynamics of the "European". On the contrary, the closure of speculative positions on the pound put significant pressure on the euro. Another negative point for the single currency remains some political uncertainty in the UK. The country is halfway to the signing of the Brexit agreement, and such a limbo shakes the euro.

Experts consider the conclusion of the first phase of a trade transaction between the United States and China as another disconcerting factor for the "Euro's" current state. Both sides reached a compromise and agreed that Washington would suspend the imposition of duties on Chinese imports, and Beijing would start buying up American agricultural products. The signing of the trade agreement is scheduled for early January 2020.

In the EUR / USD pair, the dollar is in a better position. It's easier for a greenback to resist negative influences than the "Euro", although it is also facing a hard time. The American currency experienced noticeable volatility when the tandem tried to get close to 1.1200. The tension did not subside when the EUR / USD pair reached 1.1135 to 1.1136. Experts consider this level to be very important and has predicted a desperate struggle for it among the "bulls" and "bears".

The end of last week raised the EUR / USD pair to a maximum level of 1.1170, but the tandem did not last long there. After a while, it was in a downtrend, where it remains to this day.

On Monday, December 16, the EUR / USD pair runs in the range of 1.1128–1.1129, falling even lower moments. However, experts are counting on its further recovery.

Analysts believe that in the near future the European currency will be able to find drivers for growth, although at first, it may turn out to be small. One of them is the orderly UK exit from the EU, experts say. Analysts believe that another catalyst for raising the euro is the rejection of further easing of the monetary policy of the ECB.

Many experts expect a corrective decline in the EUR / USD pair while believing that the single currency will not go beyond the critical limits by touching the bottom. It is much more difficult to recover from low positions, but the chances of the "Euro" is quite good, experts are sure