US Dollar Price Outlook: EUR/USD Breaks Higher, Will The Rally Continue?
2020-12-17 17:15:00
Peter Hanks,
Strategist
EUR/USD Price Outlook:
EUR/USD enjoyed a topside break out above the 1.2153 mark which opened the door for further gains
With the Federal Reserve committed to its program of bond-buying and low rates, USD weakness seems likely to persist
Further still, IG client sentiment reveals retail traders are overwhelmingly net-short EUR/USD, a hint the pair might continue to rally
Advertisement
US Dollar Price Outlook: EUR/USD Breaks Higher, Will The Rally Continue?
The US Dollar has weakened since March and the recent Federal Open Market Committee meeting may have paved the way for a continued decline in the US Dollar Basket (DXY), despite a recovering global economy. Presented by Fed Chairman Jerome Powell himself, Fed officials found few reasons to curtail bond purchases or raise rates prior to 2023, meaning USD bears might remain in control. While global central banks are in a race to the bottom in many ways, the Fed’s bond-buying puts it a leg above the rest and this dovish advantage is visible in EUR/USD rates.