Euro dollar fundamental overview
The current context of uncertainty is exacerbated by political tensions in France, where the possibility of a government led by the Rassemblement National is increasing fiber investors’ anxiety about the financial stability of the Eurozone. These political concerns weigh significantly on the EURO, as investors fear that election promises of higher government spending and protectionist economic policies could further destabilize the economy.
On the monetary policy front, there is growing expectation that the European Central Bank may have to intervene again with interest rate cuts in an attempt to stimulate the economy. Recent statements by the ECB’s Mario Centeno suggest that the European Central Bank is ready to maintain an accommodative policy until inflationary pressures moderate.
So, as investors prepare for US macroeconomic data, it could lead to more volatility for the Euro-Dollar.
Technical Analysis and Euro Dollar Forecasts
At the time of writing, the price of fiber was at 1.0683, down by 0.18% and in full bearish movement which could see an extension given the stationing below the key level of 1.0700. A confirmed close below it would allow the bears to have all they need to reach the yearly level 1.0643 in a short time.
A return from the bulls will only be considered a close above the key 1.0700 level, with the Euro-Dollar bulls looking to reach at least the 1.0764 yearly level.
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