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EUR/USD drops below key moving averages as traders reprice Fed cuts
The euro is trading around 1.1598 after slipping from the 1.1700 resistance area, and the outlook hinges on how traders interpret recent Fed-related remarks.
Yahoo Finance highlights that EUR/USD fell to about 1.1598 and is trading well below both the 50 and 200 exponential moving averages after a breakdown from the 1.1700 resistance level.
The piece attributes the euro’s lackluster rebound to traders reassessing expectations for Federal Reserve rate cuts, after a Friday speech shifted sentiment and reduced the odds of cuts that some market participants had been pricing in.
On the British pound, the author expects GBP/USD to stay range-bound, arguing that the pound’s relatively higher interest rate helps insulate it from US dollar strength, though they note the US dollar is the main driver of the move.
For USD/CAD, the outlook is to buy on dips, with the trade framed in part around the ongoing US and Canada trade war, and a near-term target cited around 1.3950 over the next day or two as US rates continue to rise.
Latest closeEUR/USD 1.160 ▼0.2%|GBP/USD 1.351 ▼0.3%