EURUSD – Up
Event to watch out for today:
21:00 USD – FOMC Minutes
EURUSD:
EUR/USD continues its winning streak as the US Dollar (USD) is experiencing downward pressure, which in turn is supporting the Euro-Dollar pair. The pair rose to the 1.0810 level during the Asian session on Wednesday. Higher US bond yields and a softer tone on risks should help limit USD losses. Traders also prefer to wait for the FOMC meeting minutes before making new directional bets.
Investors will be looking for fresh signals on how the Federal Reserve (Fed) will cut rates, which will play a key role in determining the dollar’s near-term trajectory. At the same time, growing confidence that the U.S. central bank will eventually begin easing its monetary policy by mid-2024 and expectations of four 25 basis points (bps) rate cuts before the end of this year are proving to be key factors undermining the dollar.
Meanwhile, investors have already priced in the possibility of an early Fed rate cut amid signs that the US economy is in good shape and tough comments from influential FOMC members. This is pushing US Treasury bond yields higher, which, along with a softer tone in equity markets, could provide some support to the safe-haven US dollar and help limit further rate cuts.
Trading recommendation: We consider buying from the level of 1.0800, if the level is lost we gain Sell positions
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You may check other analytical reviews on FreshForex website. Source: freshforex.com.
