Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

72.12% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

Things to know to trade EUR

Things to know to trade EUR

Information is not investment advice

The EUR has been climbing up over a week. Some investors expect a soon resistance, while others have only a bullish prospect. Here below you’ll find main factors that move EUR.

ECB meeting on June 4

June 4 is the big day for EUR. The ECB’s head, Christine Lagarde, will make a rate statement and hold a press conference later that day. The focus of attention is the Pandemic Emergency Purchase Program (PEPP). What is it? It’s the program that helps to support the economic activity in Eurozone amid the coronavirus. How does it work? The ECB pours more money to the market by buying assets. Think of it as an injection to stimulate the whole economy. Most analysts expect the central bank to add 500 billion euros of asset purchases to this program. That will help EUR to keep rallying. If the ECB increases the PEPP, EUR will rise. Otherwise, if the ECB adds less than 500 billion euros or doesn’t add any asset purchases at all, EUR may fall.

Elsewhere, there are some other things to look at. The ECB will unveil the inflation outlook. If Lagarde says that inflation picks up too slow, EUR will retest its support at 1.10. Otherwise, if the ECB is quite sure that inflation will pick up soon or inflations risks are balanced, EUR will rise to 1.125-1.3.

Also, pay attention on the growth prospect. If the central bank assesses the future recovery as uncertain, EUR will fall. If the ECB sees a slowdown in economic activity, EUR won’t move. But if Lagarde reveals the optimistic economic outlook and disappearing risks, EUR will surge.

Moreover, notice the ECB decision on interest rates and quantitative easing program. Most analysts expect that Lagarde won’t impose any changes for now, but she will give her guidance for lower rates for longer. If it’s like that, EUR will get an additional boost to go up.

Finally, the ECB can discuss the Targeted Longer Term Refinancing Operations (TLTRO), that provide banks with money to lend to customers. If the central bank eases TLTRO conditions, it will push EUR upward. Otherwise, if Lagarde imposes further deposit cuts, EUR will fall.

USD bearish trend

The US dollar continues falling down. Investors have doubts on the future US recovery as violent riots are destroying most American cities. What’s more, these crowds of protesters increase chances for the second wave in the USA and economic activity loss. Even Goldman Sachs, a reliable investment bank, bets against USD. According to the ING Bank, this summer EUR will test new highs near the 1.15 level.

Optimistic outlook for recovery

The market entered the summer with a really positive sentiment. Economies are reopening, lockdowns eased and rates for new coronavirus cases decreased. However, be aware that some fears of a slow recovery can make pressure on EUR.

Technical analysis

These days EUR/USD is traded at unseen levels since mid-March. It has broken through the 61.8% Fibonacci level at 1.1165. Now it’s headed to the 78.6% Fibo level at 1.1310. Support levels are 1.1165 and 1.1065.

Follow the ECB statement on June 4 and catch the market move!

Check economic calendar

EURUSDDaily.png

TRADE NOW

Similar

Popular

How Will BoJ Meeting Affect the Yen

Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus

Choose your payment system

Feel the Team Spirit

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later