Where To Next For The EURUSD?
We have a very light economic calendar in the week ahead with the main highlights being the FOMC meeting minutes as well as Flash PMI data out on Friday. Thus, with the light calendar and these events in mind our attention turns to the EURUSD this week.
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The EURUSD currency pair has been on quite a tear from March this year with the pair jumping over 12% after recently topping out just above 1.1900.
The run to the upside has been exacerbated as there was both upside factors pushing the EUR higher and at the same time, we had downside pressures on the USD.
The EUR upside was main driven by the EU Recovery Fund as well as the 1.3 trillion EUR stimulus Pandemic Emergency Purchase Program. This combination of unprecedented fiscal and monetary policy support was one of the main drivers for the EUR’s strength.
On the other side of the coin is the USD that has been pressured by multiple factors namely; inability to control the virus, huge amounts of liquidity from FED stimulus, expectations for the FED to eventually implement more easing policies, Europe’s outperformance and recently US Stimulus bill concerns.
Has any of that changed? Well, in the broader view not really. But why then have investment banks like Morgan Stanley recently turned tactically neutral and banks like Nordea and Credit Agricole taken shorts on the pair?
We’ll dive into this in the week ahead section of our report as we have plenty of drivers that will show us where the pair is likely to trade next?
This week’s video https://bit.ly/2DrRyri will help you prepare for the upcoming events and provide insights into how you could possibly trade them as well.
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Highlights of the video:
00:44 – Current Baseline
02:28 – Baseline expectations for the upcoming risk event
08:05 – Possible sentiment shifts
10:58 – Possible currency pairs to consider
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If you find these weekly analysis and trade ideas useful, you’ll love Forex Source. There’s a link below were you can learn more about it
https://bit.ly/346RkAr
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Learn how to turn news into profits with our market commentary - learn more here – https://bit.ly/346RkAr
----
The EURUSD currency pair has been on quite a tear from March this year with the pair jumping over 12% after recently topping out just above 1.1900.
The run to the upside has been exacerbated as there was both upside factors pushing the EUR higher and at the same time, we had downside pressures on the USD.
The EUR upside was main driven by the EU Recovery Fund as well as the 1.3 trillion EUR stimulus Pandemic Emergency Purchase Program. This combination of unprecedented fiscal and monetary policy support was one of the main drivers for the EUR’s strength.
On the other side of the coin is the USD that has been pressured by multiple factors namely; inability to control the virus, huge amounts of liquidity from FED stimulus, expectations for the FED to eventually implement more easing policies, Europe’s outperformance and recently US Stimulus bill concerns.
Has any of that changed? Well, in the broader view not really. But why then have investment banks like Morgan Stanley recently turned tactically neutral and banks like Nordea and Credit Agricole taken shorts on the pair?
We’ll dive into this in the week ahead section of our report as we have plenty of drivers that will show us where the pair is likely to trade next?
This week’s video https://bit.ly/2DrRyri will help you prepare for the upcoming events and provide insights into how you could possibly trade them as well.
----
Highlights of the video:
00:44 – Current Baseline
02:28 – Baseline expectations for the upcoming risk event
08:05 – Possible sentiment shifts
10:58 – Possible currency pairs to consider
----
If you find these weekly analysis and trade ideas useful, you’ll love Forex Source. There’s a link below were you can learn more about it
https://bit.ly/346RkAr
