September 25, 2022

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EURUSD is trying to get back 1.0000 but the US dollar is getting stronger

Having managed to record small gains in the last three consecutive trading sessions, The price of the euro in dollars It appears to have already reversed trend in the early hours of the session in Asia Pacific, and also fell below parity. The short-term technical outlook shows that bullish investors are still hesitant, and in the absence of high-impact macroeconomic data, the perception of risk could influence the movement of the fibers during the Wall Street session.

On Friday, the University of Michigan’s High Impact Consumer Survey showed consumers’ 12-month and five-year inflation expectations fell to 4.6% and 2.8%, respectively. Although the US dollar’s future is slightly weaker, it appears that these percentages did not have such a strong impact on the upcoming Fed rate decisions. By monitoring CME Group’s FedWatch tool, there is now a 20% chance that the US central bank will raise its benchmark interest rate by 100 basis points on Wednesday.

One dollar is at the mercy of the macroeconomic context; Waiting for the Fed

Rising fears of a global recession and escalating geopolitical tensions are weighing on the mood of the markets this early part of Monday. Over the weekend, US President Joe Biden said the US military would defend Taiwan in the event of an invasion by China. In response, the Chinese Foreign Ministry announced today that Beijing “He regrets and vehemently opposes this and has made ferocious protests“.

Taking into account the current risk-averse market environment, European and US stock indices (futures in this case) are in negative territory losing between 0.50% and 0.90%. In the event that the major Wall Street indexes open today with huge losses and close both, The euro is likely to be subject to the dollar to strengthen the dollarThat should be able to maintain its strength.

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At the time of writing, the EUR/USD is at 0.9989, in negative territory at 0.25%. The exchange rate is likely to fluctuate close to the exchange rate without any noticeable fluctuations until Wednesday 21st September meeting with the next rate hike by the Federal Reserve.

The corresponding annual levels 1.0239 (long) and 0.9797 (short) were confirmed as bullish and bearish targets.

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