EUR/USD Currency Pair and Interest Rates: What to Expect
- The EUR/USD currency pair is expected to continue its downward trend until the American inflation figures are announced.
- Interest rates are shifting globally towards a longer period of increase, with seven of the world’s top 10 traded currencies facing determining borrowing costs in the coming days.
- Policymakers face a challenging decision on whether to raise interest rates or pause, with the European Central Bank meeting on Thursday. Economists are divided on the outcome.
Technical Analysis of the EUR/USD Currency Pair:
- The price of the EUR/USD currency pair is currently following a downward trend, with Fibonacci retracement tools indicating additional levels for sellers to watch.
- The 50% Fibonacci level lines up with the trend line around the 1.0815 mark and the dynamic inflection point of the 100 SMA.
- The 100 SMA falls below the 200 SMA, confirming that the overall trend is still bearish.
The US dollar may be impacted by the US CPI report, with a strong reading expected to bolster expectations of Fed tightening.