Risk Markets Sell the EURUSD

EUR/USD Exchange Rate Sees One of its Biggest Weekly Losses in Months

Forex Signals | The Euro to US Dollar (EUR/USD) exchange rate tumbled over the past week. Investors have been looking for safer currencies like the US Dollar (USD) again, as expectations for a global economic rebound are tempered slightly.

Since opening this week at the level of 1.2222, EUR/USD has been trending with a downside bias. Yesterday, EUR/USD touched on a low of 1.2112 – the worst level for the pair in a month.

While EUR/USD is away from those lows a little, the pair still trends low in the region of 1.2122 at the time of writing on Friday.

Eurozone news hasn’t been hugely surprising lately. However, markets will still closely watch next week’s European Central Bank (ECB) policy decision.

Euro (EUR) Exchange Rates Weaker as Rivals Recover

With both the Pound (GBP) and US Dollar (USD) mounting rebounds over the past week, the Euro has been weakening. Investors are selling the Euro as its rivals recover.  Forex Signals EURUSD Price Hits Resistance

Investors have had little other reason to move on the Euro lately. Eurozone data continues to come in largely unsurprising, and the Eurozone’s worsening coronavirus restrictions haven’t been seen as impacting the outlook much either.

US Dollar (USD) Exchange Rates Advance as Markets Less Willing to Take Risks

The safe haven US Dollar has become more appealing again over the past week.

As the global coronavirus situation appears to worsen and many major nations face huge infection rates and shuttered economies, there are fears that things may take longer than hoped to get back to normal.

This has caused a slight rebound in the US Dollar’s safe haven appeal.

Markets are also disappointed with what is perceived as a weaker than expected US stimulus plan from the incoming Joe Biden administration. According to Derek Halpenny, Currency Analyst at MUFG:

‘The reality is that while the Democrats now have increased power having won the run-off elections in Georgia last week, that power still has its limits’

Euro to US Dollar (EUR/USD) Exchange Rate May Not Fall Much Farther

The Euro to US Dollar exchange rate has seen one of its worst weeks in months, but will this downside trend continue? Some analysts believe the US Dollar outlook remains bearish overall.

As the Euro outlook has not changed much, the shared currency could easily recover against the US Dollar if the US Dollar gives back some ground.  EURUSD Price Will Resistance Level at $1.20 Holds

‘While short-term, the US Dollar could extend further, the big-picture backdrop for the Dollar remains negative,’

This is because there are still expectations for economies to eventually recover from the coronavirus pandemic. This expectation is likely to boost market sentiment, so the US Dollar’s safe haven appeal will likely weaken again.

Meanwhile, the Euro could see its own support bolstered if the European Central Bank (ECB) is not as dovish as expected in its upcoming policy decision.  trading eur/usd

The ECB will hold its January policy decision next Thursday, and it could be the most influential event for Euro to US Dollar (EUR/USD) exchange rate investors next week. Pound Falls Brexit Deal

Risk Markets Sell the EURUSD

Forex Signals

Forex Signals

Risk Markets Sell the EURUSD

Risk Markets Sell the EURUSD