Market mood EUR/USD: Weak USD, strong EUR [Video]
|Listen to the latest market mood for the EURUSD pair.
Weak USD, Strong EUR
Asian equity markets and futures markets have started the week on the front foot as risk-on appetite is supporting the market. Shanghai and Hang Seng have both surged strongly higher up 5.19% and 3.36% respectively. For now, the rising COVID-19 cases are firmly in the background.
In this risk-on environment expect further Dollar weakness.
Expect EUR strength on the expectations that the proposed Euro Recovery fund will be agreed by all 27 EU member states.
Therefore, expect EURUSD buyers for the next session as the current risk-on tone should support the EURUSD pair.
Day trade – We expect this trade to play out before the close of the US session However, the trade will remain valid for as long as its underlying factors remain valid.
Trade Risks
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A return to concern over rising US COVID-19 cases will invalidate this outlook.
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Any breakdown in the European Recovery Fund expectations.
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Any trade tensions between the US and China or any other major economy could invalidate this outlook.
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