Burning forecast 28.06.2018

The euro drops ahead of the EU summit.

On Wednesday, the European currency sharply turned to a decline - and now the picture appears more downward than upwards. Two reasons: Higher yields on US bonds - on Wall Street, a debate has developed -will the Fed be able to keep the growth of interest rates on loans even by raising the rate? Some of the responses will be a new inflation report on Friday.

The second predicament for the euro is the summit of EU leaders and the issue of migration control. Merkel's government is on the verge of collapse because of the demands of the CSU party to send their refugees back to Germany - in the country through which they arrived in the EU.

German Chancellor Merkel tried to negotiate a reduction in the influx of refugees to Germany - but was met with a tough resistance from the new government of Italy - they do not need refugees in large numbers. (This refers to the influx of refugees across the Mediterranean Sea - from Syria, Libya, and other countries in Africa and Asia).

The EU summit looks disastrous on the day of its beginning - the summit will be held on June 28-29.

We sell the euro from 1.1506, stop 1.1551, profit 1.1360.

Alternative: Buy the euro at a breakthrough of 1.1720

The euro drops ahead of the EU summit. On Wednesday, the European currency sharply turned to a decline - and now the picture appears more downward than upwards.