In bull market, good news gets better and bad news gets less bad
Although it seems irrational, the market sentiment is that, with the Fed's large injection of liquidity, several vaccines in the third test phase and the uncertainty of the American elections approaching, the dollar no longer seems like a safe haven.
Although the fundamentals point to a faster recovery in the United States and due to the injection of money by the Fed there is a chance of an increase in inflation and, consequently, in interest rates which would lead to a stronger dollar (carry trade).
However, in the short term, capital flows (CoT) and market sentiment dictate the pace, and they show us that there is a great possibility of a rally in EURUSD up to the psychological level of 1.17.
Although the fundamentals point to a faster recovery in the United States and due to the injection of money by the Fed there is a chance of an increase in inflation and, consequently, in interest rates which would lead to a stronger dollar (carry trade).
However, in the short term, capital flows (CoT) and market sentiment dictate the pace, and they show us that there is a great possibility of a rally in EURUSD up to the psychological level of 1.17.
Related publications
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.