The Euro managed to appreciate against the Dollar last week and yesterday extended its gain. On Friday the report on the US labor market will be published, which is the main current data. The duel is far from decidedaccording to Commerzbank economists.
The dollar remains in control this week
“Many market participants will remain wary of the strong dollar move four weeks ago following January’s surprisingly positive NFP. Consequently, they will probably be wary of taking too strong positions against the dollar during the week.”
“If it becomes clear that the labor market is not showing any signs of weakening not at all despite massive rate hikes in the past, the market will be more confident in further rate hikes from the Fed and that interest rates remain at these levels for longer. That would be USD positive.“.
“Next week attention is likely to turn back to the Euroas the ECB meeting could also hold some surprises after euro zone inflation data surprised to the upside. However, the following week will once again focus on the dollarsince the FOMC meeting will be held. This means that the battle between the Euro and the Dollar is far from decided.“.
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.
