The EUR/USD currency pair will be the most watched currency pair starting Monday, July 29, 2019. This date will possibly be the starting point of a new up-trend for a fairly weak Euro. The EUR/USD rebounded last week after hitting a new monthly-low of 1.1101. This monthly-low was caused by the European Central Bank’s (ECB) reluctance to cut interest rate from its current rate of 0% to somewhere lower.
If a rate cut lower than zero had been implemented by the ECB, the EUR/USD pair would’ve easily dropped well below 1.1100, but that didn’t happen. The pair currently finds itself hovering around the 1.1125-1.1128 mark topping off at 1.1139 late Sunday evening.
Although the EUR/USD appears to be stuck in mud along a very constricted operating zone after the ECB adjourned its meeting last week, the US Federal Reserve anticipated interest rate cut decision could cause the currency pair to rebound rapidly. However, before any rapid rebound occurs, the pair could pull back to as far back as to the old zone at 1.1101 or somewhere close, before skyrocketing to higher highs. This is usually what happened just before a big move is set in motion.
The USD is very strong right now, beating most of the currencies in the basket of six major currencies. Therefore, it will take a negative decision such as the advent of a US interest rate cut to cause the demise of the US dollar.
Elsewhere on the macroeconomic docket of announcements such as the US jobs report, trade balance, personal income and the ISM Manufacturing PMI, things could get very volatile, setting the stage for increase levels of volatility, and the increase potential for profits.
Monday’s macroeconomic schedule seemed like it will lack much volatility as opposed to the remainder of the week, which will have US CB Consumer Confidence for July and US Pending Home Sales for June on Tuesday. All in all, the overall outlook for the EUR/USD is an eventual upward bias in the near term.
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Mr. Glenford S. Robinson is the Chief Executive Officer and Founder of Mstardom Finance. He is the editor-in-chief of News and Magazine article publishing. Mr. Robinson is also the lead developer of the Mstardom Finance Platform at Mstardom.com. He is passionate about quantitative finance and technologies associated with that discipline, such as python-based algorithmic programing. Mr. Robinson is also a Clinical Laboratory Scientist currently practicing laboratory medicine. When Mr. Robinson is not practicing laboratory medicine, writing articles, or studying finance, he is creating mathematical and statistical modules, using quantitative approaches to identify trading opportunities in the Forex and Stock Market.