HomeFinance NewsEUR/USD Gains Brief Relief, Yet Fed Remarks Escalate Stress

EUR/USD Gains Brief Relief, Yet Fed Remarks Escalate Stress

Published on

The Euro remained steady against the US Dollar during Asian and European trading sessions, despite the prospect of a possible interest rate hike by the Federal Reserve. The currency, along with other majors, is struggling with the potential impact of rising inflation and higher borrowing costs. Minneapolis Fed Governor Neel Kashkari stated that rates could go higher if the economy is stronger than expected, which could further support the US Dollar. The market believes that the US economy is better positioned to continue its growth despite tighter monetary policy, which puts the Euro at a disadvantage.

The Euro’s challenges may intensify with the upcoming speech by Fed Governor Michelle Bowman, who is known for her hawkish stance. If she reiterates the need for another rate rise and “restrictive” levels of rates for some time, it could strengthen the Dollar even further. In terms of market-moving news, German consumer confidence numbers from GfK and US durable goods orders for August are expected to have a short-lived impact on the Euro. The US Dollar’s strength remains impervious to potential government shutdowns, while the Euro lacks fundamental support against the Dollar due to the market’s belief in the US economy’s strength.

From a technical analysis perspective, the Euro/USD pair has been consistently declining since July and is on track for its eleventh straight weekly loss. It has broken below key Fibonacci retracement levels and is currently trading within a range that offers resistance at 1.06944 and support at 1.05205. If bulls challenge the upper bound of this range, they may target the overall trendline resistance at 1.07124. However, the pair is currently oversold, and any bouncebacks could be met with further selling in the near term.

Source link

Latest articles

The Importance of Professional Pressure Washing Services

Pressure washing is an efficient cleaning method that uses high-pressure water to remove dirt,...

Why Professional Pressure Washing Matters

Pressure washing is a highly effective way to remove dirt, mold, grime, and other...

Ultimate Guide to Window Cleaning Services: Why It’s Essential, Why Pros Are Better, and the Best Companies in the U.S.

Window cleaning might seem simple, but professional services bring expertise, safety, and efficiency that...

Your Guide to Choosing the Best Pressure Washing Services

Pressure washing is a powerful cleaning solution to keep homes, apartments, and commercial properties...

More like this

The Importance of Professional Pressure Washing Services

Pressure washing is an efficient cleaning method that uses high-pressure water to remove dirt,...

Why Professional Pressure Washing Matters

Pressure washing is a highly effective way to remove dirt, mold, grime, and other...

Ultimate Guide to Window Cleaning Services: Why It’s Essential, Why Pros Are Better, and the Best Companies in the U.S.

Window cleaning might seem simple, but professional services bring expertise, safety, and efficiency that...