Euro On The Up!
After two weeks of Euro sell-offs against the USD, we have seen a shift in direction. The Euro advanced today against the USD and JPY. This follows concern over inflation from ECB policy makers.
“The euro gained 0.4 percent to $1.4720 as of 10:04 a.m. in New York. The single currency climbed to 164.42 yen, from 163.73. Malpede said the euro will trade between $1.45 and $1.50 in the next month.” - Bloomberg
More Euro Gains Ahead
This prediction of high value trading would take the Euro up to an all-time high against the USD. We looked at the technical chart for the EUR-USD on Friday, and could clearly see the Euro in oversold territory, highlighting the buy-back that we’ve seen so far today.
USD Consolidation
The fall in USD value today was limited by an expected Fed interest rate cut tomorrow. The present 4.5% rate is expected to be cut by a quarter percent to 4.25% tomorrow. Futures contracts on the Chicago Board of Trade are split 76%/24% in favour of a quarter-percent rate cut (4.25%) instead of the half-percent cut (4.00%). The majority of economists are favouring 4.25% as the Fed’s expected target tomorrow.
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[...] gone against technical chart indicators as well as predictions from experts. In the past week one expert claimed that the Euro would be trading between $1.45 and [...]