Continuing with the bearish view, Kevinn is anticipating a drop in EUR/USD due to concerns about economic recession in the Eurozone, which could limit the upward momentum of the Euro.
Currently, the currency pair remains restricted below the 1.07 level, and our focus today will be on the release of the US Consumer Price Index (CPI) report, which is expected to have a significant impact on the market. If inflation in the US increases rapidly, it could raise the likelihood of the Federal Reserve raising interest rates again, leading to higher yields and a stronger US Dollar. This would directly act as a resistance for EUR/USD, making the scenario of a price decline more evident.
The EUR/USD pair is currently trading around 1.0700 during the early Asian session on Tuesday. The US Dollar (USD) is being weighed down by lower US Treasury bond yields, providing some support for the pair. However, concerns about a potential recession in the Eurozone may limit the Euro's upside potential.
Currently, the currency pair remains restricted below the 1.07 level, and our focus today will be on the release of the US Consumer Price Index (CPI) report, which is expected to have a significant impact on the market. If inflation in the US increases rapidly, it could raise the likelihood of the Federal Reserve raising interest rates again, leading to higher yields and a stronger US Dollar. This would directly act as a resistance for EUR/USD, making the scenario of a price decline more evident.
The EUR/USD pair is currently trading around 1.0700 during the early Asian session on Tuesday. The US Dollar (USD) is being weighed down by lower US Treasury bond yields, providing some support for the pair. However, concerns about a potential recession in the Eurozone may limit the Euro's upside potential.