A weaker dollar index will push the EURUSD pair higher. The euro has found its uptrend and now we want to develop a trading plan for the EURUSD pair while examining the Forex market outlook.
Weekly forecast of the Euro pair index
The financial markets are looking for a balance between the negative impact factors of the Covid-19 virus outbreak and the positive medium-term factors associated with the production of the same vaccine. US domestic economic data show economic recovery in the country, albeit at a slower pace than expected. The EURUSD pair continues to move up to the level of 1.2. In September, the European Central Bank's verbal intervention in the financial markets pushed the buyers of the euro back, but now these buyers are moving forward in the price chart.
US stock indices have fallen slightly to their 15-day high as the number of people hospitalized for coronas rises. At the same time, these indicators are still near their peak. Stock indices did not fall as Trump had predicted if Biden won. The S&P 500 rose 7.7 percent after the US election, the second highest performance for a new president in 90 years, according to the data. The performance of stock indices has significantly exceeded the rise in 2016 in which Trump won. The growing demand for venture capital as well as the shrinking atmosphere of political uncertainty are influential factors that are driving down these capitals, of which the dollar is a part. In general, it can be said that financial markets have reacted positively to Biden's actions, and this is a downward factor for the dollar.
I can not say that the weakening of the dollar is no longer a factor in the rise of the euro. The current situation is similar to that seen in late spring and early summer. Quarantines have helped, and the number of coroners in European countries is declining. Six months ago, this happened with the stimulus packages and the reduction of political risks caused the EURUSD pair to rise.
Weekly forecast of the Euro pair index
The financial markets are looking for a balance between the negative impact factors of the Covid-19 virus outbreak and the positive medium-term factors associated with the production of the same vaccine. US domestic economic data show economic recovery in the country, albeit at a slower pace than expected. The EURUSD pair continues to move up to the level of 1.2. In September, the European Central Bank's verbal intervention in the financial markets pushed the buyers of the euro back, but now these buyers are moving forward in the price chart.
US stock indices have fallen slightly to their 15-day high as the number of people hospitalized for coronas rises. At the same time, these indicators are still near their peak. Stock indices did not fall as Trump had predicted if Biden won. The S&P 500 rose 7.7 percent after the US election, the second highest performance for a new president in 90 years, according to the data. The performance of stock indices has significantly exceeded the rise in 2016 in which Trump won. The growing demand for venture capital as well as the shrinking atmosphere of political uncertainty are influential factors that are driving down these capitals, of which the dollar is a part. In general, it can be said that financial markets have reacted positively to Biden's actions, and this is a downward factor for the dollar.
I can not say that the weakening of the dollar is no longer a factor in the rise of the euro. The current situation is similar to that seen in late spring and early summer. Quarantines have helped, and the number of coroners in European countries is declining. Six months ago, this happened with the stimulus packages and the reduction of political risks caused the EURUSD pair to rise.