EUR/USD Fundamental & technical analysis
1-US Debt Ceiling Vote: The vote on the US debt ceiling has caused a wave of uncertainty in the markets, creating a risk-off environment that has seen the US Dollar gain ground against other currencies, including the Euro.
2-US Labour Market Strength: The US job openings data for April was unexpectedly strong, which could compel the Federal Reserve to raise interest rates again in June. A rise in interest rates generally supports the currency, hence the USD is gaining strength.
3-Weak European Inflation: Data from Germany and France indicates that inflation in these countries is cooling, reducing pressure on the European Central Bank to raise interest rates. This development is causing the Euro to lose ground against the USD.
4-Weak Chinese Data: Poor Chinese manufacturing data is causing concern about a potential global economic slowdown, which often causes investors to flock to safe-haven assets like the USD.
Given the above factors, there's a bullish sentiment for the USD in the market, meaning the EUR/USD pair is more likely to be in a short position. The strong labor market data from the US, the anticipation of a Federal Reserve rate hike, the weakness in the European economy as indicated by the cooling inflation rates, and global concerns sparked by poor Chinese data, all point to a stronger USD relative to the EUR.
Good luck with your trading!
2-US Labour Market Strength: The US job openings data for April was unexpectedly strong, which could compel the Federal Reserve to raise interest rates again in June. A rise in interest rates generally supports the currency, hence the USD is gaining strength.
3-Weak European Inflation: Data from Germany and France indicates that inflation in these countries is cooling, reducing pressure on the European Central Bank to raise interest rates. This development is causing the Euro to lose ground against the USD.
4-Weak Chinese Data: Poor Chinese manufacturing data is causing concern about a potential global economic slowdown, which often causes investors to flock to safe-haven assets like the USD.
Given the above factors, there's a bullish sentiment for the USD in the market, meaning the EUR/USD pair is more likely to be in a short position. The strong labor market data from the US, the anticipation of a Federal Reserve rate hike, the weakness in the European economy as indicated by the cooling inflation rates, and global concerns sparked by poor Chinese data, all point to a stronger USD relative to the EUR.
Good luck with your trading!
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