• 月. 10月 18th, 2021

    TRADEVIEW MARKET-INSIDER

    Market news from tradeview.tech

    EUR/USD bulls take a breather ahead of the Fed

    ByRealtrade.news

    7月 29, 2020


    • EUR/USD is taking a breather in the range of 1.17 to 1.1708. 
    • The Fed may signal a higher tolerance for inflation. 
    • Dovish talk on inflation could yield another sell-off in the US dollar. 
    • US fiscal wrangling is a cause for concern for the dollar bears. 

    EUR/USD’s upward momentum looks to have stalled with investors adopting a cautious stance ahead of the Fed amid renewed concerns regarding the health of the US economy.

    The currency pair faced rejection near 1.1780 for the second straight day on Tuesday and is currently trading around 1.1730. The exchange rate has been restricted to a narrow range of 1.17 to 1.1750 since Tuesday’s European trading hours. 

    Focus on Fed

    While the Fed is unlikely to boost stimulus on Wednesday, it is widely expected to strike a dovish tone and signal higher tolerance for inflation in the light of the resurgence of coronavirus cases, the Sino-US tensions, the fiscal impasse in the US and the resulting concerns over the future course of the US and global economy. 

    The dollar will likely take a beating across the board, extending its recent drop and pushing EUR/USD above 1.18 if the Fed signals higher tolerance for inflation and expresses readiness to do more, if required. Take note that traders of fed funds futures contract expect rates to fall below zero during the third quarter of 2020. 

    Fiscal deal elusive

    A $1 trillion US coronavirus rescue package remains elusive even as a Friday deadline to extend unemployment benefits looms. The political wrangling seems to have put brakes on the dollar sell-off and capped the upside in EUR/USD near 1.1780.

    Moreover, Democrats are pressing for a larger spending commitment as the $1 trillion stimulus package proposed by Republicans includes a reduction in weekly unemployment benefit from $600 to $200. 

    If the political deadlock liners, the equity markets may come under pressure, putting a haven bid under the greenback. 

    Technical levels

     



    Source link

    TradeviewForex入会特典

    Tradeviewforex.infoでは特別にトレード手数料を抑えたアカウントを提供しています。
    ・Xレバレッジ:手数料80%割引(例:1000円→200円)※スプレッド圧縮の形での還元
    ・ILC口座:1ロット当たりの手数料60%オフ(通常500円→300円)

    追加アカウントでの入会の場合は、連絡事項に「212283に乗換を希望」とご記入ください。

    コメントを残す

    メールアドレスが公開されることはありません。 * が付いている欄は必須項目です

    English English Japanese Japanese