Yahoo Finance EUR/USD Price Forecast – Euro Continues to Struggle With Same Area
The Euro has initially tried to rally during the trading session on Thursday but continues to fail at the 1.1850 level. This is an area that has been noisy more than once, so it should not be a huge surprise to see that the market has pulled back yet again. This is a market that I think will continue to see a lot of noisy behavior, especially as the Federal Reserve Vice Chairman Richard Clarita surprised everybody yesterday with the opinion that the Federal Reserve would be hiking rates in 2023. Obviously, this is an absolute joke, but it obviously caused a bit of nerves.
EUR/USD Video 06.08.21
The real reason the US dollar seems to be strengthening is due to a lack of US dollars in the system. The Federal Reserve has been doing a lot of behind the scenes, trying to ease liquidity measures. That being said, there are also concerns about whether or not the global economy is going to continue to show strength again, and at this point in time it certainly looks as if we are a bit concerned, so with that being the case the market is likely to see a lot of choppy yet negative behavior.
Obviously, the Friday jobs report will have a major influence on where we go next, so with that being the case I would expect to see a lot of volatility but by the end of the day Friday, we should have a little bit of clarity. We have been falling hard, and it is worth noting that the market did drop rather significantly from the “death cross” above. That of course is a very negative move.
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This article was originally posted on FX Empire
