EUR/USD: Downside risks continue to build - BTMU

Matías Salord FXStreet

Analysts from The Bank of Tokyo-Mitsubishi UFJ, expect the euro to remain under pressure and see the EUR/USD pair trading between 1.0400 and 1.0800 next week.

Key Quotes:

“We expect the euro to remain under downward pressure against the US dollar in the week ahead. Our short-term valuation model continues to signal building downside risks although the EUR/USD rate has temporarily found some technical support at around the 1.0600-level.”

“We expect the minutes from the February FOMC meeting to be interpreted more hawkishly than the accompanying policy statement. The market is still eagerly awaiting further details of President Trump’s tax plans which could provide support for the US dollar."

“Higher political risk in Europe remains a weight on the euro in the near-term. The market will be watching closely developments at the upcoming Eurogroup meeting on the 20th February for evidence that the Troika are moving closer to reaching a compromise agreement to extend financing to Greece.”

“The latest PMI surveys for February are expected to signal that the economic growth in the euro-zone continues to strengthen providing some support for the euro.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.