EURUSD to end decade with possible downside

EURUSD surged last Wednesday following dovish comments by Federal Reserve chairman Jerome Powell during the release of the Federal Open Market Committee (FOMC) statement. Leaving the interest rates unchanged, Mr Powell further highlighted that interest rates are likely to hold through in 2020.

Other geopolitical events in the last weeks of 2019 could influence and have an impact on the price of EURUSD. The European Central Bank (ECB) led by Christine Lagarde did not deviate from the plan by her predecessor Mario Draghi as it announced that it has restarted its stimulus programme. As a measure to reach inflation targets, the ECB plans to buy up assets amounting to 20 billion euros each month "for as long as necessary".

In the UK, one of the largest political events towards the end of 2019 added uncertainty for the closely linked euro-dollar as the UK held its general election. The results of the election saw Prime Minister Boris Johnson's Conservative Party remaining in power. An election upset would have resulted in volatility in currency markets.