EUR/USD what moves the market
2023.01.26 06:53
EUR/USD what moves the market
Budrigannews.com – Since yesterday, there has been risk-on, and the trigger was the BoC rate, where the message for the future was more important than what they did. They increased by 25 basis points, but now they intend to stop raising rates. Speculators predict that other central banks (CBs) will follow in the footsteps of the BoC and FED.
However, it can still vary from country to country, particularly when we consider that, for instance, inflation in is not decreasing; As reported this week, it was up. Potential CB uniqueness can make fascinating patterns on FX crosses as opposed to on FX huge matches.
However, if we take into account that a strong EUR and speculation that the FED will soon end the hiking cycle were to blame for a lot of the USD’s weakness over the past few weeks, we might see an unexpected rebound.
Now, consider what would happen next week if the ECB failed to deliver hawkish action. If the FED sticks to its plan and a lot of the dollar’s weakness has already been priced in, then strong market reversals may occur. Buying the rumor and selling the news may result in a rebound, whereas EUR may experience a sharp decline.
Still bullish from an Elliott wave perspective, but currently in a fifth wave that is approaching the 1.10 level.
