EUR/USD: In Search of a New Bottom ● Last week, all the attention of the markets was focused on the FOMC meeting of the US Federal Reserve, which took place on September 21. The probability of another rate hike by 75 basis points (bp) had been estimated at 74%, and by 100 bps at 26%.
EUR/USD: Ahead of the US Federal Reserve FOMC Meeting ● The World Bank said last week that risks of a recession in 2023 are growing amid simultaneous tightening of monetary policy by the world’s leading Central banks and the energy crisis in Europe. According to Citigroup strategists, the dollar remains the only safe haven for
EUR/USD: Two Events of the Week ● The past week was marked by two significant events. First, the EUR/USD pair updated its 20-year low on Tuesday, September 06 once again, falling to 0.9863. And then the European Central Bank raised its key interest rate for the first time in its history by 75 basis points
EUR/USD: Rather Boring Week ● The past week was, boring, so to say. The macro statistics released from August 30 to September 2, although versatile, turned out to be quite close to market expectations. For example, the harmonized consumer price index in Germany, was 8.8%, with the forecast of 8.8%. The consumer price index
EUR/USD: The Global Economy Is in Danger Again ● So, EUR/USD broke through the key support level formed in 2016. It fixed a low at 0.9899 on Tuesday, August 23, the low the pair traded 20 years ago, in November-December 2002. The euro lost about 485 points to the dollar lover the past year alone.
EUR/USD: Back to 1:1 Parity ● EUR/USD has been moving sideways in the 1.0100-1.0270 channel for more than three weeks. All attempts to break through its upper or lower border ended in failure. This movement continued until August 10, when, after the publication of data on inflation in the US, the pair went up sharply,
EUR/USD: Weak Inflation Weakens Dollar ● EUR/USD has been moving sideways in the 1.0100-1.0270 channel for more than three weeks. Attempts to break through its upper or lower border ended in failure each time. Even very strong data on the US labor market, which came out in the first week of August, did
EUR/USD: Unexpected Positive News from the US ● EUR/USD has been moving sideways in the 1.0100-1.0270 channel for almost three weeks. Timid attempts to break through the upper or lower border of the channel have ended in failure each time. Could it be the summer holiday season to blame? Most likely, the reason is the
EUR/USD: FOMC Meeting Results: Why the Dollar Is Falling and Stocks Are Rising ● So, the meeting of the FOMC (Federal Open Market Committee) of the US Federal Reserve took place on Wednesday, July 27. There were no doubts that the key interest rate would be raised. But how much? By 100 basis points (bp),
EUR/USD: The ECB’s Monetary Experiment: Crossing a Hawk with a Dove ● The single European currency showed slight growth at the beginning of last week, fixing a local high at 1.0272. There are three reasons for this. The first and most banal one is a corrective rebound after the EUR/USD pair, having broken through the
