EURUSD attempts to grow ahead of the Fed and ECB meetings
May 3, 2023 9:22 am
EURUSD
The euro attempted to decline on negative U.S. economic news at the beginning of the week and reached new weekly lows. However, there, the euro encountered buyers and even signaled growth.
This was facilitated by the rise in inflation in the EU from 6.9% to 7% in April, increasing the probability of the ECB raising rates. Simultaneously, everyone anticipates the Fed to hint a potential pause in rate hikes in today’s meeting.
According to forecast, the Fed will raise the rate by 25 basis points to 5%, the highest in at least 20 years. However, U.S. inflation recently reached its highest levels since 1980.
At the same time, tensions are growing around the U.S. government debt, pressing resolution of the debt ceiling by the end of May. However, there are no negotiations yet—first negotiations are scheduled for next week.
You can carefully buy the euro at approximately current levels, with a small stop, in case the growth continues.
Further decisions need to be made first after the Fed, then after the ECB.
We are observing.
The material has been provided by InstaForex Company – www.instaforex.com
EURUSD
The euro attempted to decline on negative U.S. economic news at the beginning of the week and reached new weekly lows. However, there, the euro encountered buyers and even signaled growth.
This was facilitated by the rise in inflation in the EU from 6.9% to 7% in April, increasing the probability of the ECB raising rates. Simultaneously, everyone anticipates the Fed to hint a potential pause in rate hikes in today’s meeting.
According to forecast, the Fed will raise the rate by 25 basis points to 5%, the highest in at least 20 years. However, U.S. inflation recently reached its highest levels since 1980.
At the same time, tensions are growing around the U.S. government debt, pressing resolution of the debt ceiling by the end of May. However, there are no negotiations yet—first negotiations are scheduled for next week.
You can carefully buy the euro at approximately current levels, with a small stop, in case the growth continues.
Further decisions need to be made first after the Fed, then after the ECB.
We are observing.
The material has been provided by InstaForex Company – www.instaforex.com
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