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If the Chinese retaliatory measures are strengthened during the initial trade war, the US dollar, this strategy may not be effective in the current context. The American exceptional loss is likely to weaken the US dollar. Let’s discuss this topic and develop a trading plan for Euusud husband.
The article covers the following topics:
Main meals
- Investors do not believe in the White House strategy.
- China’s response to the American definitions weakened the euro.
- Greenback cannot grow while S&P 500 is falling.
- Long deals can be opened on the Eurusd pair if the pair is more than 1.1.
The basic expectations of the US dollar
Donald Trump hates this when the economy fails, but most importantly is that the White House has finally achieved what it wants, which reduced the revenue of the treasury bonds. It does not really matter that the collapse depends on the fear of the imminent recession. The recession fears decreased amid an unexpectedly strong US labor market report Euusud Bears to push the main currency pair down.
Meanwhile, Scott Bessent expects a strong US dollars in the long run, while Pictet Asset Management expects a 10-15 % decrease in the dollar index over the next five years. The Treasury Secretary stated that there are no signs of recession, while JP Morgan expects that the American economy will face a recession early in 2025. At the same time, the company reviewed the gross domestic product expectations from 1.3 % to -0.3 %.
Non -agricultural salary statements change in the United States
Source: Wall Street Journal.
The White House encouraged investors to maintain the upscale view, citing the gains of employment of 228,000 large as a remarkable achievement. However, it is important to recognize the broader context. This number was achieved before the definitions were announced by Donald Trump. Moreover, the previous months index is reviewed, and when it is combined with unemployment to 4.2 %, the March report can be considered calm before the storm.
However, this report has generated optimism between Euusud Bears. Market fears included the possibility of stagnation, a scenario characterized by slowing economic growth along with high inflation. The market expected four works of cash expansion from the Federal Reserve in 2025. However, the actual result was less severe than expected. Jerome Powell has constantly emphasized the need to move slowly. In a sharp comment, Donald Trump said that the Federal Reserve Chairman was always “late” and called for a reduction in prices as soon as possible.
In addition, EURUSD’s pair of pressure from China’s announcement of a 34 % tariff on US imports. The markets of the first trade war remember when Beijing adopted a retaliatory position, but it abandoned its confrontation approach. As a result, the yuan weakened by 10 %, and may exercise a sense of revenge with more downward pressure on it. A similar trend has been observed in the euro.
The relationship between S&P 500 and the US dollar
Source: Wall Street Journal.
The main issue lies in the basic difference between the current trade war and the eight years. In the past, the US dollar has not faced a threat to lose credibility. She did not face the same challenges related to its perceived situation as a leading global currency, as evidenced by the reinforcement link between the US dollar index and the S&P 500 index. As long as the wide stock index remains in a declining direction, the recovery view remains favorable to the upscale investors.
Erusud weekly trading plan
the Strategy From selling Euusud The couple has proven at 1.105 its success, but the continued decrease in the US stock market will allow traders to buy the euro again. The 1.1 level provides the line in the sand. If the bulls fail to push quotes above this level, it may be profitable to consider short situations.
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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