EURUSD – Up
Events to pay attention to today:
15:00 EET. EUR – CPI m/m
17:00 EET. USD – JOLTS Job Openings
EURUSD:
EUR/USD is under selling pressure, hitting near one-week lows of 1.0730 on Tuesday during Asian trading. Several Federal Reserve officials, including Michelle Bowman, Loretta Mester, John Williams, and Mary Daly, are scheduled to speak later today.
The Institute for Supply Management (ISM) released data on Monday indicating that the U.S. manufacturing sector experienced growth in March for the first time in nearly 18 months. Both output and new orders increased, causing the PMI index for the manufacturing sector to rise to 50.3 from 47.8 in the previous reading. This exceeded the market consensus forecast of 48.4. Following the release of this favourable index of business activity in the US manufacturing sector, the US dollar gained momentum. Investors have estimated that there is a 60% chance that the Federal Reserve will reduce rates by 25 basis points in June, up from 55.2% before the data was released, according to the CME FedWatch Tool.
On Saturday, Robert Holzmann, a member of the European Central Bank (ECB) Governing Council, suggested that the ECB may reduce its key interest rate before the US Federal Reserve. Additionally, ECB policymaker Yannis Stournaras stated that the ECB could cut rates by up to 100 basis points this year, although there is no agreement on this yet. Stournaras also mentioned last week that the central bank has no reason to wait for the Fed to cut rates first. The euro (EUR) is under pressure due to the ECB policymakers‘ weak comments, which are acting as a headwind for EUR/USD.
Trading recommendation: Trading predominantly Sell orders from the current price level
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