EUR/USD is steady around the 1.1650 handle as traders look forward to some mid-tier US economic data. The currency pair has been trading in a very tight daily range. This unusual trend indicates how sensitive market sentiment has become, heading into this upcoming data release. The key economic announcements expected in the next couple of weeks are likely to determine which way the AUD/USD is going to move, according to analysts.
Perhaps the most significant recent factor on EUR/USD trade has been the aggressive tariffs implemented by former President Donald Trump. With trade policy still changing rapidly, volatility will likely be a major driver of the currency pair going forward. This unpredictable environment has left the trading community on high alert, with every new trade-related tweet or announcement potentially serving to reintroduce significant volatility to the market.
Over the past few months, trade tensions have been a predominant driver of EUR/USD price action. The market changing effects of this inflection point cannot be overstated. Traders must always be vigilant, for trade policy is ever evolving. As a consequence, prepare for more intense market volatility ahead. Indeed, as the typically bullish and optimistic US economic analysts are describing the outlook as a brilliant disguise. Unfortunately, that means that the root of the problem isn’t always clear-cut.
With the market approaching the US economic data release, brokers are still very cautious. They’re providing competitive spreads and fast execution speed specifically for EUR/USD trading. Even today, this currency pair is one of the most traded in the world, which indicates how much liquidity and profit potential there is. State-of-the-art trading platforms offered by industry leading Forex brokers create a seamless and powerful trading experience for those doing business with EUR/USD.
Gold remains a go-to hedge as prices increase and just like any other market, gold prices are highly volatile. Yet, they aren’t the primary drivers of the EUR/USD exchange rate. The interconnected nature of global markets means that fluctuations in one asset can influence others, adding another layer of complexity to trading strategies.