The euro is supported by the ECB’s decision to raise interest rates and revise its inflation forecasts higher. For EUR/USD, the key factor is not only the rate move itself, but also the signal that the central bank is ready to contain the pass-through of the energy shock into prices. At the same time, the eurozone growth forecast was lowered, so demand for the euro remains cautious. The region’s economy is sensitive to energy costs and weak business activity.
The US dollar is losing ground after reports of a framework agreement between the US and Iran and a decline in oil prices. For the market, this reduces concerns over a new wave of energy-driven inflation and makes expectations for the Federal Reserve less one-sided. The US central bank is likely to keep rates unchanged at its next meeting. However, if pressure from oil prices eases, demand for the US dollar as a defensive asset may decline.
As a result, EUR/USD has room to recover, although the pair’s upside is limited by weak eurozone prospects. A scenario in which the euro remains supported by the ECB while the US dollar loses part of its caution premium looks more sustainable. If the current fundamental backdrop remains in place, the buying idea is consistent with a moderate shift in sentiment in favor of EUR/USD.
Trading idea: BUY 1.16000, SL 1.15700, TP 1.16900
The US dollar is losing ground after reports of a framework agreement between the US and Iran and a decline in oil prices. For the market, this reduces concerns over a new wave of energy-driven inflation and makes expectations for the Federal Reserve less one-sided. The US central bank is likely to keep rates unchanged at its next meeting. However, if pressure from oil prices eases, demand for the US dollar as a defensive asset may decline.
As a result, EUR/USD has room to recover, although the pair’s upside is limited by weak eurozone prospects. A scenario in which the euro remains supported by the ECB while the US dollar loses part of its caution premium looks more sustainable. If the current fundamental backdrop remains in place, the buying idea is consistent with a moderate shift in sentiment in favor of EUR/USD.
Trading idea: BUY 1.16000, SL 1.15700, TP 1.16900
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해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
More analytical information and promotions on FreshForex website cutt.ly/LrP6j9qD
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.