EURUSD: 1.0815, Downward Trend Continues
The EURUSD fell during the Asian session on Wednesday, dropping to the 1.0815 area, which is within striking distance of the lowest level since December 13, reached earlier this week.
The main factors weighing on the euro are:
The JOLTS report released on Tuesday showed that the number of job openings in the United States unexpectedly rose to 9.02 million in December, suggesting that the labor market is too strong for the Federal Reserve (Fed) to begin cutting interest rates in the first quarter.
Geopolitical risks, driven by conflicts in the Middle East and economic problems in China.
However, the recent decline in U.S. Treasury yields could keep dollar bulls from aggressive bets ahead of the Fed's highly anticipated monetary policy decision, which is scheduled to be released today. Additionally, uncertainty over when the European Central Bank (ECB) will begin cutting interest rates could be a tailwind for the common currency.
Trading recommendation: Sell orders at the 1.0800 level.
#EURUSD #Fed #FedRateHike #euro #dollar #laborMarket #geopoliticalRisks
The EURUSD fell during the Asian session on Wednesday, dropping to the 1.0815 area, which is within striking distance of the lowest level since December 13, reached earlier this week.
The main factors weighing on the euro are:
The JOLTS report released on Tuesday showed that the number of job openings in the United States unexpectedly rose to 9.02 million in December, suggesting that the labor market is too strong for the Federal Reserve (Fed) to begin cutting interest rates in the first quarter.
Geopolitical risks, driven by conflicts in the Middle East and economic problems in China.
However, the recent decline in U.S. Treasury yields could keep dollar bulls from aggressive bets ahead of the Fed's highly anticipated monetary policy decision, which is scheduled to be released today. Additionally, uncertainty over when the European Central Bank (ECB) will begin cutting interest rates could be a tailwind for the common currency.
Trading recommendation: Sell orders at the 1.0800 level.
#EURUSD #Fed #FedRateHike #euro #dollar #laborMarket #geopoliticalRisks