EUR/USD:Evaluating the Impact of Economic Data on Price Movement
Updated
The EUR/USD pair continues to follow the trajectory forecasted by our technical analysis, building on its rebound from levels below 1.0800 seen in the previous session. After yesterday's climb, where it reached 1.08500, the pair opened the European session with a slight drawback. This pullback can be attributed to the positive outlook for the US indicated by the forecast of the US Unemployment Change. However, the actual impact of this news remains to be seen upon its release.
Our current bias suggests a temporary decline until the US news is unveiled, followed by a potential uptick in the price—a pattern commonly referred to as a "Dump and Pump" scenario.
Furthermore, the EUR/USD pair receives additional support from reduced expectations of immediate interest rate cuts by the European Central Bank (ECB). Market participants, however, appear cautious about making significant moves ahead of upcoming inflation data from Germany and the US. These figures hold significance as they could influence future policy decisions by both the ECB and the Federal Reserve (Fed).
As traders await these crucial data points, they will play a pivotal role in determining the next directional move for the EUR/USD pair, particularly with the ECB meeting scheduled for the following Thursday.
Our current bias suggests a temporary decline until the US news is unveiled, followed by a potential uptick in the price—a pattern commonly referred to as a "Dump and Pump" scenario.
Furthermore, the EUR/USD pair receives additional support from reduced expectations of immediate interest rate cuts by the European Central Bank (ECB). Market participants, however, appear cautious about making significant moves ahead of upcoming inflation data from Germany and the US. These figures hold significance as they could influence future policy decisions by both the ECB and the Federal Reserve (Fed).
As traders await these crucial data points, they will play a pivotal role in determining the next directional move for the EUR/USD pair, particularly with the ECB meeting scheduled for the following Thursday.
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