Created
: 2024.10.21
2024.10.21 21:02
Will the markets can see higher EUR/USD levels again in the coming weeks? These questions are hardly surprising, given the weeks-long slide in EUR/USD that has taken the markets from 1.12 at the end of September to below 1.09. Moreover, as the end of the year approaches, this is a vital question for anyone who wants or needs to hedge, Commerzbank's FX analysts Michael Pfister notes.
"Looking at these data, it is not surprising that the movement since the end of September has been clearly driven by the US dollar, which has appreciated significantly since then. Perhaps more surprising is the fact that the euro has actually appreciated slightly against the G10 average over the same period, although this is not comparable to the huge appreciation of the US dollar. This means that in order to see significantly higher EUR/USD levels, we would probably need to see an end to the USD rally."
"It is likely that the strong increase in jobs at the beginning of October will be revised downwards and, if our economists are right, the Fed will also make another rate cut. This should take some of the wind out of the dollar's sails. But it will be a few weeks before that happens. In addition, Donald Trump's chances of becoming US President again have increased recently. His economic proposals have the potential to trigger a strong USD rally, which could overshadow the labor market and the interest rate decision."
"This does not mean that we will not see higher EUR/USD levels in the coming weeks. On Friday we saw already a small recovery. However, the risks are still clearly on the downside, which means that EUR/USD is likely to stabilise around current levels. At least until the US employment report comes in weaker and sends shockwaves through the market again."
Created
: 2024.10.21
Last updated
: 2024.10.21
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy