In the foreign exchange market, volatility has spiked in the EUR/USD and GBP/USD currency pairs. During the last few trading days, the EUR/USD has fallen even more, plummeting into the 1.1650s. At the same time, GBP/USD has fallen, getting closer to the 1.3400 level. This news comes as the US Dollar experiences a surprising resurgence. Pressures from an EU-US trade deal are adding to the bearish sentiment towards the Euro.
As market analysts have acknowledged, the EUR/USD currency pair is known for its competitive spreads and quick execution speeds. These characteristics have made it one of the most popular choices for traders looking to profit off swings in the volatile foreign exchange market. Moreover, the sophisticated trading platforms offered for EUR/USD trades allow traders to control, manage and execute their strategies in a highly volatile environment.
Despite these upsides, even the EUR/USD has not been immune to the effects of wider market forces. Last week the Euro plunged to 1.1650, reminding everyone of the difficult road ahead. Market participants are skittish and reacting violently to every economic data point and geopolitical turn. Adding to the pair’s uncertain outlook is the bearish pressure stemming from the EU-US trade deal. Many analysts expect that the Euro will now persistently weaken against the US Dollar.
The GBP/USD currency pair’s fell sharply against a generally stronger dollar today. Recent trading has turned decidedly in the direction of the 1.3400 barrier. That pair looks like it’s having a tough time getting off the ground, a sign of the skittish mood among investors in rapidly changing economic waters. The US Dollar’s recent resurgence makes this even more difficult for the British Pound. All the while, the Pound is still dealing with its own hurdles.
The recent market environment has laid bare just how correlated these currency pairs are. Moreover, macroeconomic factors play a huge role in how well they perform. Traders need to be cautious as they test new market signals. Along the way, they’ll discover endless possibilities arising from these changes.