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

  • A return to concern over rising US COVID-19 cases will invalidate this outlook.

  • Any breakdown in the European Recovery Fund expectations.

  • Any trade tensions between the US and China or any other major economy could invalidate this outlook.

 


 

Learn more about HYCM

 

High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.

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