EURUSD - Its going to be an interesting couple of days!
Its going to be an interesting few days for the EUR/USD pair, a few that I would personally sit out of in the name of capital preservation. Price action is expected to be very volatile as economic data is released over the next few days, with investors toiling over their predictions of what the US Federal Reserve will do with interest rates.
Put simply;
If economic data indicates the US economy is doing well, the Federal Reserve is less likely to cut interest rates and this particular market is likely to selloff.
Conversely if data indicates poor economic performance, an interest rate increase becomes more likely and we will see a rally.
By the end of the week we should have a much clearer picture of EURUSD's future outlook however for this moment in time it would be foolish to set any long term bets with so much uncertainty.
Hope you all had a good start to the trading week!
Cheers
ES
Put simply;
If economic data indicates the US economy is doing well, the Federal Reserve is less likely to cut interest rates and this particular market is likely to selloff.
Conversely if data indicates poor economic performance, an interest rate increase becomes more likely and we will see a rally.
By the end of the week we should have a much clearer picture of EURUSD's future outlook however for this moment in time it would be foolish to set any long term bets with so much uncertainty.
Hope you all had a good start to the trading week!
Cheers
ES
Comment:
Okay! So as predicted it has been a pretty wild week however the market seems to have respected the uptrend support indicating that investors are still leaning to the conclusion that US interest rates will be cut.
