The End of Era: What Might the UK Face Next?
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
EUR/USD ahead of Fed speech
Information is not investment advice
The US dollar waned amid the current risk-on sentiment, driven by many reasons. First of all, Donald Trump returned to the White House after spending three days in the hospital. On Friday, he was positively tested on Covid-19, but on Monday evening doctors let him go as he felt better. Secondly, US officials are planning to impose a fiscal stimulus package, which investors have been waiting for. Elsewhere, US and European PMI reports came out better than analysts expected, boosting risk-on sentiment as well.
Today ECB’s President Lagarde delivered a speech and pointed to the uncertain and shaky recovery ahead. Moreover, she emphasized that the ECB is “very attentive” to the exchange rate as officials aren’t satisfied with the current strong euro, which dampens the EU export and weighs on inflation.
Later on, the Fed will speak as well, which will add fresh volatility to EUR/USD. A more hawkish statement will underpin the USD, while a more dovish tone will weigh on the dollar.
Technical tips
EUR/USD has bounced off the 200-period moving average of 1.1800 and headed to the downside. The move below the 38.2% Fibonacci retracement level at 1.17640 will increase chances for the pair to dip lower and retest the 23.6% Fibo level of 1.17050. However, the 1.17640 level has been acting as strong support, and EUR/USD has failed to break it many times. That’s why, we can assume that the same case may happen again this time, and the pair might reverse and jump higher. Resistance levels are at the 200-period moving average of 1.1800 and the 50.0% Fibo level of 1.1810.
Similar
Why didn't oil prices calm despite OPEC+ attempts?
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
US Interest Rate Slowdown?
The US Federal Reserve may refrain from more aggressive interest rate hikes in March due to geopolitical risks after Russia's special operation in Ukraine…
Popular
The CAD vs. the World: Mid-Term Scenarios for the Currency
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
Fed Keeps Pushing USD to 2000s Highs
The US dollar index has all chances of reaching the 2000s high of 120.00.
Gold isn't saving investors from inflation
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?
Choose your payment system
