During the Asian session on Tuesday, July 16th, the EURUSD experienced a slight decline and is currently trading at 1.089.
Yesterday, Federal Reserve Chairman Powell expressed that the U.S. economic data from the second quarter has given policymakers more confidence that inflation is moving closer to the 2% target, potentially leading to rate cuts in the near future. He emphasized that the Fed will not wait for inflation to reach 2% before considering rate reductions.
Furthermore, the decrease in inflation data and nonfarm payrolls in June have reinforced market expectations of a rate cut in September. Conversely, a slight increase in inflation in Europe makes it challenging for the European Central Bank to further reduce rates. Additionally, with diminishing political risks, there is expected to be substantial support for the EUR, so a highly pessimistic outlook for it is not warranted. GET FUNDED HERE. Chris
#GBPUSD continues to exhibit a strong bullish trend, reflecting the ongoing optimism in the market. Despite the current upward momentum, it is anticipated that there may be a temporary pullback in the coming days, potentially retracing to the key support level around 1.2900. This level is seen as a significant area where a potential bounce could occur, supported by buying interest. Following this anticipated retracement, the market sentiment suggests a resumption of the bullish trajectory, aiming for a target of 1.3112.
Technical indicators and market analysis align with this projection, indicating that the pullback could serve as a healthy correction within the broader uptrend. Traders and investors are closely monitoring these levels for potential entry points and strategic positions to capitalize on the expected bounce and subsequent continuation of the bullish trend. It is essential to remain vigilant and adapt to market dynamics as the #GBPUSD pair navigates through these anticipated price movements. Chris
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