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EURUSD

Some interesting euro dollar analysis insights appeared these days. The euro is trying to gain a foothold in an uptrend paired with the US dollar against the backdrop of positive macroeconomic data published the day before. Now the quotes of the euro dollar parity are in the area of ​​1.0539.

 

See the chart euro dollar as a proof!

 

Positive dynamics in the euro dollar exchange rate

What influenced the euro dollar spot rate is the index of consumer and business confidence. In May it slightly increased to 105.0 points from 104.9 points, while the consumer confidence index corrected to -21.1 points from -22.0 points. 

 

Of key importance for the euro to dollar forecast are data on the labor market of the main EU economy – German, according to which the number of unemployed decreased by only 4.0 thousand people after a decrease of 13.0 thousand a month earlier, which is a negative signal for the market.

Impact on the euro dollar daily forecast

In turn, the quotes of the US dollar continue to demonstrate a downward trend, fixing in the area of 101.500 in the USD Index. At the moment, there are no drivers capable of supporting the euro dollar spot rate, but there are enough negative factors. Thus, since the first increase in April of this year, the price of gasoline in the United States has increased by almost 60%, and the highest values ​​in the country are now recorded in Los Angeles, where 1 gallon of fuel costs $ 7.83 – the absolute maximum in history of observations.

Euro dollar ETF market

 

The euro dollar to US dollar chart continued to rise at the start of the European session and reached an intraday peak of 1.0582 on the back of improved risk appetite. The pair has retreated from the high but is holding daily gains, trading at 1.0560 ahead of the US session. 

 

The euro dollar stocks are rising and demand for government eurodollar bonds is falling, which has led to a slight increase in yields amid a decrease in demand for security. However, optimism is limited as recession fears are in the background. US President Joe Biden raised the issue over the weekend, saying they could avoid a recession, boosting market confidence.

 

Across the Atlantic, ECB Governing Council member Olli Rehn said it was highly likely that the rate hike in September would be larger than the 25bps planned for July. However, as the European Central Bank remains two steps behind other major central banks, the comment had no effect on the euro to dollar forecast.

Euro dollar conversion history

Year

Average

Closing Price

Year Open

Year High

Year Low

Year Close

Annual

% Change

2022

1.10

1.14

1.15

1.04

1.06

-7.19%

2021

1.18

1.21

1.23

1.12

1.14

-6.92%

2020

1.14

1.12

1.23

1.07

1.22

8.86%

2019

1.12

1.15

1.15

1.09

1.12

-2.26%

2018

1.18

1.20

1.25

1.12

1.15

-4.36%


On the 4-hour euro dollar to US dollar chart, the pair remains neutral. The euro dollar parity attracts sellers around the flat 200-day SMA while buyers defend support around the bullish 20-day SMA.

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