EURUSD: Still short - Eurozone will cut first
As you can see, I've been short EURUSD since 3/31/24.
Last week's CPI report and the build-up before that have turned a profitable trade into a losing one for now.
I think the Fed will continue to hold higher rates, and I believe the economy still has some steam.
Inflation takes a while to work its way into the economy and takes even longer to get out, so I'm still a USD bull.
Other economies, such as the Eurozone, have much lower inflation, with the very important exception of Germany.
Today, EURUSD showed some weakness, failing at the 1.0900 area, but we will have to wait all week to see where this candle finishes.
Last week's CPI report and the build-up before that have turned a profitable trade into a losing one for now.
I think the Fed will continue to hold higher rates, and I believe the economy still has some steam.
Inflation takes a while to work its way into the economy and takes even longer to get out, so I'm still a USD bull.
Other economies, such as the Eurozone, have much lower inflation, with the very important exception of Germany.
Today, EURUSD showed some weakness, failing at the 1.0900 area, but we will have to wait all week to see where this candle finishes.
Comment:
Political uncertainty and the ECB rate cut is pushing the Euro lower
Sorry for the type on the chart 109.00 :)