In reaction to this policy indicator, during Friday’s Asian trading hours the EUR/USD currency pair moved above the key 1.1500 level. This increase represents its third straight day of increases. The increase coincides with a decrease in the US Dollar, which some analysts are ascribing to a technical pullback. According to latest quotes EUR/USD hovers near 1.1520.
Market observers were surprised to see such a large negative turn in the euro dollar exchange rate. This change has amazed minds of traders and analysts in equal measure. The EUR/USD pair’s recent uptrend is an amazing example of the power of changing market sentiment. Investors are still keenly reacting to all kinds of economic indicators.
Downtrend of the US dollar amid domestic and global market conditions. The recent trend in economic data releases paired with a change in investor appetite are behind this move. This technical correction has given the opportunity for the euro to strengthen against its American counterpart.
Commentary from analysts on what this movement means has posited that it is a sign of continued upheaval in the currency markets. The bullish breakout of EUR/USD is often a sign of an impending trend reversal. It all depends on the dollar’s reaction in the next few days.
“EUR/USD rises above 1.1500 as US Dollar declines possibly due to a technical pullback” – www.fxstreet.com
This performance is impressive because it serves to uphold the euro’s strength given a highly volatile and weak underlying economic backdrop. Market participants are hypersensitive to changes in the economic data. Because inflation could be a large driver in the currency’s worth, they strongly monitor inflation data and employment numbers.
Going forward, as the trading week develops, traders will want to key in on the magnitude of the US Dollar’s performance. Beyond that, they’ll want to look for anything else that may impact the EUR/USD exchange rate. Traders are advised to keep abreast of these evolving market developments and adjust their trading strategies as needed.
“The Best brokers to trade EUR/USD” – www.fxstreet.com