Is US Dollar Euphoria Started to Fade Out?
The geopolitical events have a major impact on the investors trust about the Dollar and that it is backed up by the fact that the popular currency lost against the most major pairs.
Even though the USD retraced, nonfarm payrolls, the most important report last week, didn't have any major impact on the FED .
The Wages went up by 0.3%, jobs had also a steady growth in May and the unemployment rate declined.
Now President Trump's aggressive decisions about the global trade war has made the USD stronger but for how long? We are waiting for the countermeasures of the rest of the nation's which they may trigger a chain reaction that may probably hit the US Dollar and create a panic in the US market giving the opportunity for the investor to look for a safer asset to invest.
Chairman Powell will probably raise interest rates next week due to the fact of the steady jobs growth.
We are awaiting for this week's non-manufacturing ISM report which may show a much better and stronger performance in the service sector.
Now is more probable for the Fed to gradual increase the interest rates and according to Fed fund futures, investors see a probability of 75% chance to get another hike in September or November and even December.
On the EURUSD Daily chart we can identify a mature koumo break out with the price been below the cloud, tekan sen and kijun sen seem to be in a bearish formation and the chikou span is below the price.
The picture here may appear bearish for now but to be able to spot any potential bearish signals price needs to bounce on kijun sen.
This article was originally posted on FX Empire
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