The EUR/USD market sometimes refers as a ‘washing machine’ where global trade and portfolio flows are and are canceled with each other, says Chris Turner, FX analyst in ING.
EUR/USD will consolidate in a range of 1.09-1.11
“And the EUR/USD has not been a great player in this agitation of global trade. It would be if the idea of ​​a topic of ‘selling America’ will be developed completely, where assets markets in euros would be one of the few available to absorb any exodus of US assets. Curiously, it seems that ECB officials are interested in promoting the euro as the strong alternative to the dollar at this time.”
“In theory, a slightly better perspective for world trade should be positive for the euro. However, the euro has not been recently affected, and in fact, the largest reevaluation of the Fed curve during the night (four expected cuts this year reduced to three) is resulting in a slight negative for the EUR/USD.”
“More consolidation is expected in a range of 1.09-1.11 for the EUR/USD in the short term. If you find good demand about 1,0900 today with a firm American IPC, the price action will tell us that investors are still willing to cover/reduce exposure to the dollar.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
