The forex outlook that you’ve been wating for is here.
EURUSD had a neutral trade yesterday as trading was sideways ahead of the European Central Bank (ECB) decision, where traders see rate cuts as a near certainty. the dollar weakened on renewed bets on the expected easing cycle of the US central bank this year.
The Canadian dollar USDCADedged slightly higher, trimming some losses from the previous session, after the Bank of Canada became the first G7 country to cut its key policy interest rate as widely expected.
The euro 0.07% to $1.0876, as traders looked ahead to the European Central Bank (ECB) interest rate decision and Press Conference by President Christine Lagarde later today.
The ECB is anticipated to cut its interest rates by 25 basis points (bps) at its 6 June meeting, reducing the main refinancing, the marginal lending, and the deposit rate to 4.25%, 4.50%, and 3.75%, respectively. Financial markets have priced in 43 bps of ECB cuts by September and around 60 bps by the end of the year. The divergence between the ECB and the US Federal Reserve (Fed) could exert some selling pressure on the Euro (EUR) and create a headwind for EUR/USD.
FIn the broader market, the U.S. dollar was on the back foot, weighed in part by easing labour market conditions in the United States which added to the case for Fed rate cuts this year.
Data released yesterday, the U.S. services sector switched back into growth mode in May after a short-lived contraction the month before, though details of the survey pointed to employment remaining in contraction territory.
Technical Outlook – EURUSD ( Forex )
The forex outlook saw EURUSD pair traded natural yesterday, after hitting a high of 1.08915 pair settled at 1.08684, down 0.10%.
On the above chart, the pair is trading on a verge of massive resistance 1.08949, coincided with neck line of Head & Shoulder pattern. A break above it pair could gain sharply and it may gain till 1.0960-10990 mark.
On the downside, immediate support will see at 1.08307-1.07935
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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