After Moody’s lowered the U.S. credit rating at the end of last week, the euro rose to near 1.12 at the start of the Tokyo market. In the European market, the dollar kept falling and the euro went up to 1.1288. In the New York market, the euro dropped a little to 1.1225 due to a strong reaction, but it still stayed strong as people are worried about the U.S. dollar.
Because of the rating downgrade, there is more concern about the U.S. economy, and people are paying more attention to the euro as another safe currency to use instead of the dollar.
The worry about the dollar may calm down over time, but for now, the euro is expected to stay strong.
Expected Euro-Dollar Range: 1.1200 – 1.1320
Note: This information does not guarantee profit. Please make your own decisions when trading.