The EURUSD is ready for bullish volatility in 2023. The EURUSD currency pair is one of the most popular in the Forex market due to its liquidity and volatility. It is already in a new phase, and so much is now being paid attention to by investors. In light of recent news, traders need to understand how data-wise releases can impact this currency pair. The euro has been on the rise against the US dollar as of late, with many investors expecting further gains in 2023. This comes after data released by S&P Global showed that the EU manufacturing downturn eased in December. The EUR/USD pair is currently trading near its December monthly high at 1.0685 and appears poised to extend its gains going into 2023.
S&P Market Report
S&P Global recently published their final versions of the December manufacturing PMIs which had a significant effect on the Eurozone economy as well as on EURUSD trading activity. However, an adjustment was made from the German reading of 47.40 to 47.10, with the European Union index remaining unchanged at 47.80.
Looking ahead, traders will be paying close attention to economic data releases out of Europe for clues about future price action around EUR/USD exchange rate movements this year. In particular, they’ll be watching closely for signs of a rebound in European manufacturing activity and any developments that could affect inflation levels across Europe throughout 2023—both factors that could help drive further appreciation for the euro relative to other major currencies such as the USD or GBP throughout this year.
Despite the US not having any data releases during this period, investors should still pay close attention when trading EUR/USD pairs since even minor changes can cause large fluctuations in prices depending on various factors such as geopolitical events or economic indicators released from other countries like China and Japan, etc., thus making them highly unpredictable compared with other currencies traded within the Forex market. Therefore, understanding these dynamics will be crucial when deciding whether or not investing in certain pairs would be beneficial for individual traders’ portfolios over the long term.
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