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EURUSD shows strong performanceThe U.S. government is trying to ride out the inflation crisis with a combination of interest rate hikes and loose fiscal and tight monetary policy, which could be a positive factor for the dollar. With food and energy inflation much higher in Europe than in the U.S., the market is predicting that the ECB will enter a rate hike cycle. The path of future rate hikes will depend on commodity prices and economic growth in the eurozone. The price is predicted to move to the gray zone in the chart. Like and Share
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by Super_B_XinR
1
EURUSD is extremely vulnerable, will it fall into the abyss?The probability of recession is higher in Europe than in the United States. Europe is now facing the biggest problem is actually energy problems and food problems. And the United States' energy and food security are better than Europe. In addition, the United States is a little more resilient than Europe. Europe's economy is the most affected by this time. First, its recovery is not as resilient as the United States, and its economic growth itself is not good. Second, if the region is hit by the double blow of energy and food prices, it is likely to enter a state of recession. This shows that the euro is likely to fall to the level of parity with the dollar. If the dollar continues to rise due to interest rate hike expectations, the probability of the euro breaking down will also increase greatly.
by Super_B_XinR
EURUSD consolidating in 1.03000-1.08000 rangeAlthough the ECB's decision was widely expected, the possibility of a sharp rate hike from September has weighed on market sentiment as the eurozone economy struggles to cope with slowing growth and soaring inflation. For months, markets have been focused on the pace at which central banks are curbing inflation. Investors now expect the Fed to raise rates by 50 basis points next week, especially if Friday's U.S. CPI data confirms rising inflation figures. But central bank rate hikes also hint at trouble and leave investors in the lurch, as they could trigger an economic slowdown. The ECB said inflation will remain "undesirably high" for some time.
by Super_B_XinR
1