Event to watch today:
15:15 EET. USD - ADP Employment Change
EURUSD:
The euro remains under pressure amid rising demand for the US dollar. Rising oil prices increase inflation risks, while yields on 10-year US Treasury bonds remain near multi-year highs. This strengthens expectations of continued tight monetary policy and enhances the attractiveness of the US currency.
Previously released data on US business activity and job openings came in weaker than expected, but have not yet changed market pricing of Fed policy. The probability of a rate hike in September has risen significantly following hawkish statements from regulators. Upcoming employment data may adjust these expectations, but until then, the advantage remains with the dollar.
The European currency is not receiving comparable support from local factors. Expectations regarding ECB policy limit the depth of EURUSD decline but do not offset the impact of rising US yields and demand for safe-haven assets. As long as inflation risks in the US support the possibility of further Fed tightening, the fundamental balance allows for continued pair downside.
Trade idea: SELL 1.15900, SL 1.16300, TP 1.14900
15:15 EET. USD - ADP Employment Change
EURUSD:
The euro remains under pressure amid rising demand for the US dollar. Rising oil prices increase inflation risks, while yields on 10-year US Treasury bonds remain near multi-year highs. This strengthens expectations of continued tight monetary policy and enhances the attractiveness of the US currency.
Previously released data on US business activity and job openings came in weaker than expected, but have not yet changed market pricing of Fed policy. The probability of a rate hike in September has risen significantly following hawkish statements from regulators. Upcoming employment data may adjust these expectations, but until then, the advantage remains with the dollar.
The European currency is not receiving comparable support from local factors. Expectations regarding ECB policy limit the depth of EURUSD decline but do not offset the impact of rising US yields and demand for safe-haven assets. As long as inflation risks in the US support the possibility of further Fed tightening, the fundamental balance allows for continued pair downside.
Trade idea: SELL 1.15900, SL 1.16300, TP 1.14900
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
More analytical information and promotions on FreshForex website cutt.ly/LrP6j9qD
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.