EURUSD is shaping towards a decline amidst market factors. EURUSD is currently shaping towards more decline following a break below the key zone of 1.0800. This Monday has signaled a reasonable loss, and there could be potential further losses as the US dollar strengthens. The US dollar has been gaining strength against several eurozone currencies, which has had a major influence on the downside market of EURUSD.
However, it is important to note that several countries’ oil markets are experiencing a rise against the dollar. This divergence can be attributed to the seemingly increased involvement of the US military in the Red Sea area. This geopolitical factor is undoubtedly affecting market movements. Additionally, earnings releases from major tech companies are also playing a role in market dynamics.
NFP Remains on Traders’ Radar
Traders are eagerly awaiting several key events to keep their focus high this week. These include the Federal Reserve’s decision on interest rates and Chairman Powell’s speech. Economic indicators and the Nonfarm Payroll (NFP) report are also on the radar of traders. This week, the US has shown some strength, alongside a divergence from the bond market.
The market’s composure, however, depends on the Federal Reserve’s reaction to an unchanged rate decision. Based on the CME Group FedWatch Tool, there is only a slim chance of a rate cut at this time. In summary, EURUSD is shaping towards more decline as it breaks below the key zone of 1.0800. The US dollar’s strength against several eurozone currencies has been a major influence on the downside market. However, there is a divergence in the oil markets of certain countries, which can be attributed to geopolitical factors.
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