Greenback gains strength against the Euro
Today will see the release of Eurozone inflation rates, short-term debt auctions for several European countries and the UK, and in the afternoon Jerome Powell will speak in Sintra (Portugal) at the ECB's speakers' panel on the US rate strategy. This may be the precursor to tomorrow's FOMC meeting with a possible rate cut signal. CME's FedWatchTool mark bets inflation will apply possibly two cuts this year starting in September. Powell has been more upbeat on inflation with systemic risks to the downside, but we have to watch.
If we look at the EURUSD this day it has been moving from the previous day downwards reducing its price by -0.59%. It is currently at 1.07192 with a low of 1.06000 and a high of 1.09630. If we look at the RSI we anticipate a change of direction to the upside, given that it was highly oversold in the 30% zone so it would not be unusual to see a recovery towards the current checkpoint zone which is at 1.08600 in the strong zone and in the weak zone at 1.73800 of the current double-bell. Quantitative tightening policies are likely to continue to devalue the Euro against the dollar in the long term if the Euro zone does not tighten its policy.
Ion Jauregui – ActivTrades Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
If we look at the EURUSD this day it has been moving from the previous day downwards reducing its price by -0.59%. It is currently at 1.07192 with a low of 1.06000 and a high of 1.09630. If we look at the RSI we anticipate a change of direction to the upside, given that it was highly oversold in the 30% zone so it would not be unusual to see a recovery towards the current checkpoint zone which is at 1.08600 in the strong zone and in the weak zone at 1.73800 of the current double-bell. Quantitative tightening policies are likely to continue to devalue the Euro against the dollar in the long term if the Euro zone does not tighten its policy.
Ion Jauregui – ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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