The EUR/USD currency pair is on the brink of posting the lowest weekly close in two months, according to analysts at MUFG Bank. The US Dollar has the potential to rise further against the Euro, possibly reaching the 200-day Moving Average, currently around 1.0330.
The pair has dropped below the 1.06000-level in the past week, and experts are predicting it to fall back to the 200-day moving average of 1.0330. The recent decrease in EUR/USD has largely been caused by the US Dollar, as strong US activity data and higher inflation in the start of the year has led the market to anticipate a more hawkish Fed policy.
Despite the fact that Eurozone activity data is still showing positive results, the extent of the upside surprises has been diminishing. The EUR failed to increase in value following the positive PMI surveys in the past week, and there was a downward revision to German GDP in Q4, revealing a bigger contraction.
As the US Dollar is expected to continue its rise against the Euro, investors should be aware of the potential risks and rewards of this movement. The US Dollar is currently trading at a two-month low against the Euro, and if the 200-day Moving Average of 1.0330 is breached, it could signal a further drop in the value of the Euro.
On the other hand, if the Euro manages to hold its ground at or above the 200-day Moving Average, it could be a sign of a strengthening currency. This could be due to the Eurozone’s economic recovery, which has been gaining momentum in recent weeks.
The EUR/USD currency pair is one of the most heavily traded pairs in the world, and understanding the movements of the US Dollar and Euro can be essential for investors looking to make informed decisions. Although the US Dollar is expected to continue its rise against the Euro, investors should keep an eye on the Eurozone’s economic recovery and the potential of a strengthening currency.
Analysts at MUFG Bank have stated that the US Dollar has room to rise further against the Euro, potentially reaching the 200-day Moving Average of 1.0330. The pair has already broken below the 1.06000-level in the past week, and experts are expecting it to fall back to the 200-day moving average. This decrease in the value of the EUR/USD is largely due to the US Dollar, as stronger US activity data and a hawkish Fed policy have encouraged the market to anticipate a further rise in the US Dollar.
The Eurozone’s economic recovery is still showing positive results, but the extent of the upside surprises has been diminishing. This has led the EUR to fail to increase in value following the positive PMI surveys in the past week, and the downward revision to German GDP in Q4 has revealed a bigger contraction.
Investors should be aware of the potential risks and rewards of the US Dollar’s rise against the Euro. If the 200-day Moving Average of 1.0330 is breached, it could signal a further drop in the value of the Euro. However, if the Euro manages to hold its ground at or above the 200-day Moving Average, it could be a sign of a strengthening currency.
In conclusion, the EUR/USD currency pair is expected to post the lowest weekly close in two months, and the US Dollar has the potential to rise further against the Euro. Investors should keep an eye on the Eurozone’s economic recovery and the potential of a strengthening currency, as well as the potential risks and rewards of the US Dollar’s rise against the Euro.