Even the EUR/USD currency pair isn’t so strong. It is holding its recovery improvements just under the 1.1400 level early as Europe begins trading on Monday. At the moment, the US dollar is in a period of extreme weakness. In light of these developments, the euro has an excellent chance of strengthening vis-à-vis the U.S. dollar. Market analysts are adamant that the pair’s most natural direction is in front of it – up. This trend is being accelerated by diverging economic incentives and more recently by geopolitical events.
The prolonged US dollar weakness suggests difficult headwinds against the greenback’s rebound. Economic conditions suggest that the interest rate differential that typically favors the US dollar is unlikely to change significantly throughout the year. Nevertheless, this strong structural foundation for the euro is currently under serious threat. All this time, even with the current crypto market turmoil, it continues to gain ground against the dollar.
Furthermore, recent headlines surrounding the US-China trade relationship have remained in sharp focus, adding another layer of complexity to the currency market. Even as the trade war drags on, uncertainty is still winning the day when it comes to investor sentiment. National analysts have marveled at the rapid developments in this space. Specifically, they’re all ears right now as important conversations around Federal Reserve policy, or “Fedspeak,” come up. The results of these negotiations may prove crucial to establishing market consensus for each currency.
In addition to these positive economic signs, thrilling things are afoot in the cryptocurrency ecosystem. These changes are poised to dramatically shift the dynamics in that market. The aggregate unlocked value of digital assets climbed to more than $906 million. A good chunk of this increase is due to the TRUMP token, which will individually unlock over $330 million. This influx of capital into the crypto market highlights shifting investor interests and may indirectly affect currency valuations as traders seek alternative investment opportunities.
With the EUR/USD pair finding its hold below the key resistance barrier at 1.1400, bulls are still looking forward to move south currency further benefits. In today’s market condition, the US dollar is weak. This weakness is extremely important to understand in order to stoke a very bullish euro outlook. It is the cocktail of solid economic fundamentals and inflating geopolitical tensions that is driving traders to keep an optimistic outlook on the euro.