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History shows that the US dollar has constantly demonstrated flexibility during the periods of economic shrinkage, but the recent developments in American policy, which is characterized by targeting the allies, led to a decrease in the investor’s confidence. Selling in American stocks exacerbates the situation. will Euusud The pair of mutation to 1.15? Let’s discuss this topic and develop a trading plan.
The article covers the following topics:
The main fast food
- After inheriting a strong economy, Trump destroys it.
- The US dollar faces a crisis of confidence.
- American stock indicators are enhanced by the euro.
- Short trades can be taken into account if the EURUSD pair fails to settle over 1.1055.
The basic expectations for the daily US dollar
Fear, frustration, stagnation, and even the confidence crisis are among the reasons that investors mentioned to the decline in the US dollar in response to Donald Trump’s tariff. The market buys Euusud The couple, expecting the United States growth in import duties, and reaching unprecedented levels since the twentieth century, will first harm its economy and work.
The definitions are expected, by their nature, are expected to be inflation in the country that imposes it. At the same time, the nation responsible for the customs tariff faces a slowdown in economic growth. This can increase the risk of stagnation in the euro area, which, along with a huge flow of cheap Chinese goods in its markets, would force the European Central Bank to reduce interest rates strongly. On the contrary, the Federal Reserve is likely to maintain the current rate policy, and expect a possible increase in PCE to 4.5 %.
EURUSD’s pair offered a big boom, driven by concerns about the state of the American economy. Donald Trump inherited a country that was 2.8 % GDP growth, the rest of the world, the unemployment was low, and the Federal Reserve had almost tamed inflation. Investors expected that the President 47 would improve the situation. However, the prevailing feelings among investors are that the current administration will only harm the American economy. A recent survey conducted by Bloomberg revealed that 92 % of its experts believe that the risk of stagnation has increased.
EURUSD performance in different scenarios
Source: Wall Street Journal.
History shows that the US dollar is flexible during periods of economic shrinkage. In such circumstances, it is used as a safe strait origin. However, in the current economic climate, Greenback is not the basic safe haven. According to Deutsche Bank, the Japanese yen emerged as a safe pioneering origin, as the US dollar lost credibility due to unconventional policies of President Donald Trump, which led to the formation of strategic alliances and the emergence of new competitors.
In the short term, investors seek to benefit from the return teams, which leads to net purchases Euusud A pair in response to the narrowing of the spread between us and the rates of German bonds. However, capital flows from the American stock market to Europe are a more important engine in the long -term currency pair gathering.
EURUSD against various factors
Source: Wall Street Journal.
CITI expects the Eurusd pair to 1.15 in 2025, as the American customs tariff will cause 11 % decrease in American stock indicators, while their European counterparts will lose only 5 %.
In my opinion, the future path of the main currency pair depends on the actions of the European Union. If the European Union is moving in negotiations with the White House and implementing the new financial stimulus packages to support its economy, it is possible that the currency pair will rise to 1.15. On the contrary, a global trade war with the United States can lead to a decrease in Euusud Quote.
EURUSD Daily Trading Plan
It is worth noting that as the American economy continues to show flexibility, the S& P 500 index has more opportunities to rebound from the bottom and support Greenback. In light of this, the strong American recruitment data for March may force traders to lock profits in their long sites on Euusud Poison and start selling the euro if the quotes fail to stay above 1.1055.
This expectation depends on an analysis Basic factorsIncluding official data from financial institutions and organizers, various geopolitical and economic developments, and statistical data. Historical market data is also.
Eurusd price scheme in the actual time
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of the Litefinance Mediator. The materials published on this page are provided for media purposes only and should not be considered to be considered investment advice for guidance purposes 2014/65/European Union.
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