Vasilis Tsaprounis
Independent Analyst
The single European currency for the second day in a row shows signs of stabilization but has not yet managed to register a stronger reaction.
During yesterday's day with the opening of the new week and European currency tried to create a mild upward trend which brought it close to the level of 1.07 but without managing to secure it.
Τhe echo of the previous week with the decision of the European Central Bank to raise interest rates but to limit the aggressive tone as most likely that the cycle of raising key interest rates has closed, it remains in the atmosphere and continues to act as a counterweight on single European currency.
At the same time the international stock markets without showing signs of collapse are under question, there are liquidations and the slight climate of uncertainty certainly favors the US currency for now.
On today's agenda, the announcement on last revision for inflation in the eurozone stands out, where no surprises are expected. While later in noon we have the announcement for Housing Starts and Building Permits in US.
It is logical that all interest is concentrated on Fed's decision tomorrow about to increase or not the key interest rates with the bets being concentrated in favor of no increase but without excluding the surprise.
While It is very likely that the market will show more sensitivity to President Jerome Powell's statements and to the forecasts for the next moves of the Fed.
Although tomorrow carries significant risks and the possibility of more pressure on the euro remains in play I prefer to hold positions in favor of the euro for now as yesterday's mild reaction I feel is not enough.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD loses traction, retreats below 1.0600
EUR/USD lost its recovery momentum and declined below 1.0600 in the American session on Friday, erasing a portion of its daily gains in the process. Nevertheless, the risk-positive market atmosphere after PCE inflation data helps the pair limit its losses.
GBP/USD turns negative on the day below 1.2200
GBP/USD reversed its direction and slumped below 1.2200 in the American session on Friday after rising above 1.2270 earlier in the day. Position readjustments and profit-taking on the last trading day of the quarter seems to be weighing on Pound Sterling.
Gold reverses direction, drops below $1,860
Following a steady rebound toward $1,880 on Friday, Gold price made a sharp U-turn and turned negative on the day near $1,860. Although the 10-year US T-bond yield is down more than 1%, XAU/USD struggles to find demand on the last day of Q3.
Polkadot Price Forecast: DOT reversal seems inevitable after 92% correction from all-time high
Polkadot price, in nearly two years, has shed 92.91% from its all-time high of $55.09. The massive downswing in DOT has pushed it down to levels that were last seen in October 2020. Hence, the chances of this altcoin forming a bottom and rallying are high.
Earnings beat triggers Nike to spike 9%
Nike (NKE) stock has surged over 9% in Friday’s premarket, climbing above $98 per share, following late Thursday’s fiscal first-quarter earnings release. Nike beat pessimistic earnings expectations by more than 23% and hiked its dividend by 9%.