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
GBPUSD: 1.2680, Downward Trend Continues
GBPUSD continued to lose ground for a second session in a row on Wednesday, falling to 1.2680 in the Asian session.
The main factors weighing on the pound are:
Risk-off sentiment is pushing investors towards the U.S. dollar (USD), which in turn is undermining the GBP/USD pair.
U.S. President Joe Biden said that after the deadly drone strike on U.S. troops in the border area between Jordan and Syria, the United States will respond to the specific situation in accordance with a multi-pronged approach.
However, the 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 Bank of England (BoE) will begin cutting interest rates could be a tailwind for the British currency.
Trading recommendation: Sell orders from the current price level.
#GBPUSD #Fed #FedRateCut #pound #dollar #risk #geopoliticalRisks
GBPUSD continued to lose ground for a second session in a row on Wednesday, falling to 1.2680 in the Asian session.
The main factors weighing on the pound are:
Risk-off sentiment is pushing investors towards the U.S. dollar (USD), which in turn is undermining the GBP/USD pair.
U.S. President Joe Biden said that after the deadly drone strike on U.S. troops in the border area between Jordan and Syria, the United States will respond to the specific situation in accordance with a multi-pronged approach.
However, the 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 Bank of England (BoE) will begin cutting interest rates could be a tailwind for the British currency.
Trading recommendation: Sell orders from the current price level.
#GBPUSD #Fed #FedRateCut #pound #dollar #risk #geopoliticalRisks
USDJPY: 148.00, Recovery Continues
The Japanese yen (JPY) is recovering its positive momentum on the Asian session on Wednesday, trading near its weekly high against its American counterpart, reached earlier this week.
The main factors supporting the yen are:
Concerns that the deepening conflict in the Middle East could trigger a wider war in the region.
Disappointing macroeconomic data from Japan.
The decline in U.S. Treasury yields.
The U.S. dollar (USD), on the other hand, remains in its usual range amid uncertainty over when the Federal Reserve (Fed) will begin cutting interest rates.
Trading recommendation: Consider buying at levels above 148.30.
#USDJPY #Fed #FedRateCut #dollar #yen #risk #geopoliticalRisks
The Japanese yen (JPY) is recovering its positive momentum on the Asian session on Wednesday, trading near its weekly high against its American counterpart, reached earlier this week.
The main factors supporting the yen are:
Concerns that the deepening conflict in the Middle East could trigger a wider war in the region.
Disappointing macroeconomic data from Japan.
The decline in U.S. Treasury yields.
The U.S. dollar (USD), on the other hand, remains in its usual range amid uncertainty over when the Federal Reserve (Fed) will begin cutting interest rates.
Trading recommendation: Consider buying at levels above 148.30.
#USDJPY #Fed #FedRateCut #dollar #yen #risk #geopoliticalRisks