The EUR/USD pair of currencies has been on a rip-roaring comeback. Having recently gained enough momentum to break the key psychological 1.1700 barrier, the Euro climbed to multi-week highs. During August, the euro exchange rate jumped to about 1.1750, a five-week high. This massive leap was propelled by a large multi-hundred billion sell-off of the US Dollar.
In August, the US Nonfarm Payrolls report came in way below expectations with only 22,000 jobs added instead of forecasted numbers. This pessimistic number strengthened the current pressure on the US Dollar. Consequently, Dollar resumed its downward trend, and Euro got even stronger against the Dollar. This comes as analysts point out that the bleeding of weak employment data has fueled hopes of a sooner-than-expected rate cut by the Federal Reserve. This speculation has driven the EUR/USD higher.
The EUR/USD’s climb is pretty directly tied to the overall USD weakness. The acute bearish pressure on the Dollar has naturally made the undervalued Euro even more alluring to global investors, strongly bidding up its price. Brokers are responding to this trend by offering competitive spreads and fast execution for EUR/USD trading, appealing to traders looking to capitalize on current market conditions. Access to advanced trading platforms further increases opportunities for traders specializing in the EUR/USD pair.
Market volatility has been acute in recent weeks, especially after the shocker July payrolls figures. It is these numbers that triggered the strongest responses from market participants and which even elicited criticism on President Trump’s long touted economic record. The combination of these factors has created a dynamic environment for traders, with many seeking strategic positions as they navigate the fluctuating landscape.
“Best Brokers for EUR/USD Trading” – source not specified
Speculators need to be on the lookout for key economic indicators and Federal Reserve meetings. It’s hard to overstate how much these events will shape the EUR/USD trajectory in the near term. Should the employment situation in the US stay weak, the Euro may very well continue its ascent against the Dollar. If expectations about future monetary policy change again, it can reinforce this trend.