Because of the trade war and President Trump’s changing and strong actions, people are starting to lose trust in the U.S. The U.S. dollar, stocks, and bonds are all going down, and many investors are selling U.S. assets.
Now, many people are moving their money from the U.S. dollar to safer currencies like the Swiss franc and the euro. Last week, the euro went up because of this move.
Before, some investors thought the euro would fall because of worries about Europe’s economy and possible interest rate cuts by the European Central Bank (ECB). But now, most of those short positions (bets that the euro would fall) are gone.
This week, the ECB is expected to cut interest rates by 0.25%. However, this has already been expected by the market, so it may not affect prices much. Right now, people are watching the trade war more closely than interest rates.
At the end of last week, the euro chart showed a long upper shadow (meaning prices went up but couldn’t stay high), so there is a high chance that the euro has hit a short-term top.
This Week’s Expected EUR/USD Price Range: 1.1470 – 1.1100
Note: This information is not a guarantee of profit. Please make your own decisions when trading.