Intra-day EUR/USD currency pair remains choppy to tight. It continues to hover just under the 1.1700 level in Monday’s European session. Traders are on the defensive. They’re not waiting on the sidelines and kicking the can – they don’t want to make big bets before major political negotiations that could change market signals.
Market observers note that the upcoming meeting between former President Donald Trump and Ukrainian President Volodymyr Zelensky, focused on the Ukraine peace deal, could potentially impact the EUR/USD exchange rate. However, no agreements were reached during the weekend discussions between the United States and Russia, leaving investors uncertain about future developments.
This is due to several factors that have created a unique trading environment around EUR/USD. The rapidly expanding US trade war is a dire one. In fact, analysts already fear that it will cut global output by an estimated 0.7 percentage points in the medium term. This scenario could create increased volatility in the currency pair as traders respond to heightened tensions.
Finally, the resilience of the US economy is an important factor that shapes market dynamics. Stronger customs revenues and the potential for greater appeasement from trading partners could add to the complex EUR/USD fluctuations.
Brokers have noticed traders going for the highest possible spreads on EUR/USD trades. This quick implementation might lure in traders looking to capitalize on modest price movements in this volatile time frame. The growing accessibility of powerful trading platforms is another factor that’s improving the trading experience for participants making trades in this lucrative currency market.
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As speculators remain on the sidelines waiting for geopolitical developments, EUR/USD stays in its narrow range around 1.1700. Analysts caution against deeper pro-democracy and anti-communist change in the geopolitical landscape affecting the currency pair. For the latter this is particularly true with regards to US-China relations and the shape of international negotiations to come.