In the last two weeks, we have observed that
EURUSD
is earnestly trying to establish a new base, aiming to finally take off.
Unfortunately, this cannot happen if certain variables don't change urgently. If not, EURUSD faces significant downturns repeatedly.
What are these variables?
First and foremost, US inflation needs to decline more sharply. This could occur if the job market cools down, or in other words, if we start to see lay-offs. It's not widely discussed that fewer people are entering the job market. This is primarily because there aren't many suitable candidates in the US who are both qualified for the available jobs and willing to work.
Job vacancies can be misleading. While the number of jobs requiring extensive knowledge and education is on the rise, job vacancies remain high. Naturally, in the event of a serious recession, these vacancies will diminish until the economy finds a new equilibrium."
US goverment bonds
US10Y
US02Y
The fact that nobody willing to buy them is driving up the yields which is supporting very strongly the
DXY
we need to see bond yields falling which is honestly higly unlikely right now.
Altough...
We are just 14 minutes away to receive the Initial Jobless Claims. Forecast is ONLY 212K - If we wanna see the euro flying we need to see around 300 and above .
DO NOT FORGET that today at 18:00( Budapest - Time ) Fed Chair Powell Speaks.
Trade Safe- ElGato
EURUSD
is earnestly trying to establish a new base, aiming to finally take off. Unfortunately, this cannot happen if certain variables don't change urgently. If not, EURUSD faces significant downturns repeatedly.
What are these variables?
First and foremost, US inflation needs to decline more sharply. This could occur if the job market cools down, or in other words, if we start to see lay-offs. It's not widely discussed that fewer people are entering the job market. This is primarily because there aren't many suitable candidates in the US who are both qualified for the available jobs and willing to work.
Job vacancies can be misleading. While the number of jobs requiring extensive knowledge and education is on the rise, job vacancies remain high. Naturally, in the event of a serious recession, these vacancies will diminish until the economy finds a new equilibrium."
US goverment bonds
US10Y
US02Y
The fact that nobody willing to buy them is driving up the yields which is supporting very strongly the
DXY
we need to see bond yields falling which is honestly higly unlikely right now. Altough...
We are just 14 minutes away to receive the Initial Jobless Claims. Forecast is ONLY 212K - If we wanna see the euro flying we need to see around 300 and above .
DO NOT FORGET that today at 18:00( Budapest - Time ) Fed Chair Powell Speaks.
Trade Safe- ElGato
Trade closed: target reached
