Downward risk dominates in EUR-USD

Posted 13 June, 2018

As the Federal Reserve meeting is coming to an end, the US dollar bulls have calmed down seeing reducing risks. However, the pairs generally change hands at the limited range with the market being focused on the monetary policy.

The euro-to-US dollar exchange rate managed to return to the black seeing support at 1.1730 and stays now at some 1.1765. The pair will meet eyes the following days, as the European Central Bank will be the next after the US Federal Reserve. The ECB meeting is to take place on Thursday. The position of both regulators remains uncertain.

Specifically, the players doubt that the Federal Reserve Chairman Jerome Powell will voice clear bullish signals despite the healthy economic situation. As for the European Central Bank, it is expected to announce the dates of QE exit, though the market concerns that Mario Draghi can remain careful which will affect euro strengthening. 

With the highly probable aggressive position of the Federal Reserve, the downward risks prevail in EUR-USD. The rates are getting support near a 20-day moving average at 1.1720.

However, the US dollar bulls can easily push euro below 1.17 handle if Fed officials come through with the careful sentiments.

Previous forecast

14 June, 2018 13:53

← US dollar backs down on Thursday

The euro-to-US dollar exchange rate exceeded 1.1800 handle on Thursday, reaching some 1.1824. The US Federal Reserve meeting passed as the market expected. In particular, the regulator reportedly raised the interest rate from 1.50-1.75% to 1.75-2.00%. Moreover, it commented on the positive state of the economy, so two more revisions are quite probable this year.

US dollar backs down on Thursday

Next forecast

13 June, 2018 13:39

Sterling dips in midweek →

The sterling posted weakening against the US dollar in the midweek. The price stands at some 1.3324. This week was full of economic reports and its start was marked by the April industrial production data in the UK. The report showed a 0.8% decline m-o-m, which spoiled investors taking into account the expected increase of 0.1%.

Sterling dips in midweek
Write a comment
 
Prove you’re not a bot + 15 = 24