EURUSD – Up
EURUSD:
The Euro-dollar pair is holding near the 1.0790 mark in Asian trading hours on Monday after losses in the previous session. However, the pair may face headwinds from a stronger US Dollar (USD) as recent favorable economic data from the US has reinforced expectations of a less restrained approach from the Federal Reserve (Fed) in November.
On Friday, data showed that the US Michigan Consumer Sentiment Index rose to 70.5 in October from 68.9 previously, beating the forecast of 69.0. In addition, durable goods orders fell 0.8% month-over-month in September, less than the expected 1.0% decline.
Additionally, heightened uncertainty surrounding the Middle East conflict may have increased the appeal of the U.S. Dollar (USD) as a “safe-haven” currency. Israel’s targeted attack on Iran early Saturday, conducted in coordination with Washington and limited to missile and air defense sites, was more restrained than many expected.
The dollar is also being helped by uncertainty surrounding the upcoming U.S. presidential election. Former President Donald Trump’s Republican allies have recently suffered at least 10 court defeats in battleground states that could affect the outcome of the Nov. 5 election.
European Central Bank (ECB) Governing Council member Klaas Knot on Saturday emphasized the importance of “keeping all options open” to manage potential risks to growth and inflation. “Maintaining full discretion will serve as insurance against risks materializing in any direction to the growth and inflation outlook,” Knot said, adding, ‘We believe our meeting-based and data-dependent approach has served us well,’ Reuters reported.
Trading recommendation: Trade predominantly Sell orders from the current price level.
Connect Drawdown bonus 101% and trade with double your deposit! Bonus funds will help you increase your profits or withstand a sudden drawdown!
Don’t forget about ‘MetaGallop’ from FreshForex
You may check other analytical reviews on FreshForex website. Source: freshforex.com.
