Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

News

Buy the JPMorgan dip?

Trends & Analysis
News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

News

Buy the JPMorgan dip?

Asset Watch

EUR/USD price falls despite the ECB warning

 

Wednesday, September 6, 2023

EUR/USD Price News and Analysis

• The ECB warns against underestimating the rates hike’s chance in the September’s meeting
• The EUR/USD price retreated to a multi-week low, key level to consider

 

The US dollar index (DXY) rallied yesterday to a six-month high at 104.90. This surge is largely attributed to the expectation that the Federal Reserve may revise upward its growth projections for the US economy in 2023. This revision is expected to be revealed at the upcoming September meeting. The US economy has exhibited remarkable resilience, particularly as its growth has remained robust despite the Federal Reserve’s quantitative tightening efforts, which have involved reducing its balance sheet by $1 trillion thus far.

Moreover, the US jobs report for August was seen as favorable for both the US Central Bank and the markets. It indicated a decline in the number of jobs added, coinciding with a decrease in the average hourly wages. This reduction in wage growth is seen as potentially mitigating inflationary pressures.

Conversely, certain officials from the European Central Bank have warned against underestimating the possibility of the ECB hiking interest rates at its upcoming meeting this month. They’ve indicated that, at a minimum, the ECB’s aim is to bring inflation levels in line with its 2% target by 2025. The Central Bank is set to release its economic forecasts for growth and inflation at this month’s meeting. Although European inflation levels dipped to 5.3% due to declining energy prices, there is the potential for an uptick as oil prices rebound. Brent crude oil, for instance, has recently exceeded the $90 per barrel mark, reaching its highest levels in multiple months.

EUR/USD Price Daily Chart

 

Chart source ADSS Platform

 

On August 21, the EUR/USD closed below the 50-day simple moving average and since then the pair retreated by nearly 2%. The price dropped to an eight-week low at 1.0707 then closed yesterday in the red below 1.0730 indicating that bears were still in charge, and they may press towards 1.0559. That said, the support levels located at 1.0657 and 1.0629 should be watched closely.

On the other hand, a daily close above the 1.0730 level signals the bears’ reluctance and this may encourage bulls to join the market and rally the price towards 1.0873. However, the resistance levels residing at 1.0760 and 1.0831 should be monitored along the way.


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.