After a rocky start to the week, the EUR/USD currency pair has turned positive on the week. It blasted up back above the mid-1.1300s as the Asian trading day started. This transition takes place amidst US Dollar broad weakness that has encouraged some dip-buyers to get involved in the markets. Last Thursday the pair touched a three-week low of just under 1.1265. The news is good, at least temporarily—the late summer boom looks set to continue, at least for a week.
As trading opened on Monday, the EUR/USD currency pair was the focus of nearly all investor interest, as many rushed to buy low prices. That recent drop was a good chance to buy, and it resulted in a strong recovery that brought us back into the low/mid-1.1300s. Analysts consider this movement significant because of the 200-period Simple Moving Average (SMA) on the four-hour chart. This SMA is a major factor in determining the pair’s short term direction.
Down in blockchain land, Litecoin has been one of the few up movers, trading about 5 percent higher, near $86, in Thursday’s Asian session. The price of LTC today is up modestly on the day, attempting to recover slightly after a test of some tough price action over recent days and weeks. Analysts believe that the recent Litecoin rebound in April, achieving just under 16% appreciation, could be affecting investor sentiment right now.
The overall cryptocurrency market is in a consolidation phase, indicating a time of temporary stability following recent volatility. The market is concertedly beginning to stabilize. Signs are beginning to indicate approval of a Litecoin Exchange-Traded Fund (ETF) is right around the corner, which would send investor confidence soaring even higher.
“Markets may be breathing easier, but investors should not mistake easing conditions for resolution.” – author of “Has the tariff pain peaked?”
The weakening of the US Dollar has been primarily blamed on continued uncertainty over economic policy and trade tariffs. Even as experts point to some signs of easing on the horizon, uncertainty where it shouldn’t be is the biggest danger.
“Even if headline tariff rates stay put, the real risk lies in prolonged policy unpredictability.” – author of “Has the tariff pain peaked?”
As the week progresses, market participants will be closely monitoring both forex and cryptocurrency trends for indications of future movements. How the conflicting factors of economic data releases and geopolitical developments play out will continue to influence investor decisions in these markets.