The G20 summit took place in Bali, Indonesia, on November 2022…
EUR/USD stabilized below 1.1950
Information is not investment advice
The most traded pair takes a breath after reaching levels unseen since May of 2018. It has been rallying for 7 days in a row and eventually broke through the significant resistance at 1.1900. It was a strong sign for most traders. However, profit-takers entered the market and pushed the pair slightly down. Nevertheless, bulls are still in game as the pair has crossed the main barrier. Thus, the way to the upside is clear.
The EUR/USD’s rally may be caused by the long-term weakness of the US dollar. The current risk-on sentiment decreased even more the demand for the safe-haven. Moreover, today the euro got a tailwind as the EU current account came out much better than analysts anticipated. This indicator shows a difference between imports and exports, plus all income flows during the previous month. It turned out 20.7 billion euros, while the forecast was only 7 billion. Besides, the EU core consumer price index was along with expectations: 1.2%.
All eyes on the FOMC meeting minutes today’s evening at 21:00 MT time. Most economists believe its dovish statement will drive the US dollar lower, and therefore EUR/USD higher. Otherwise, if the tone is hawkish, the US dollar will rise.
EUR/USD has been stuck in a range between 1.1900 and 1.1700 for almost a month. Today the pair has managed to break out this range. However, now it’s struggling to cross the next resistance at 1.1950. If it succeeds to break it out, the doors to 1.2000 will be open. In the opposite scenario, if it drops below the key psychological mark of 1.1900, it may dip down to the low of August 17 at 1.1835.
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.