Euro Forecast: Why the Strong Start to April May Continue for EUR/GBP, EUR/JPY, EUR/USD Advertisement
Euro Forecast Overview:
As global bond yields have steadied following their spike starting in late-February and continuing into late-March, German Bund yields have declined by less than their UK Gilt or US Treasury counterparts, giving the Euro a slight yield advantage in the near-term.
EUR/JPY remains on the most convincing bullish path, EUR/USD remains within the downtrend from the intrayearly high (ahead of returning to a key zone of support and resistance for the past nine-months), and EUR/GBP may be working its way to former consolidation resistance following its false bearish breakout.
Euro Forecast: Trading Through Political Headwinds - Setups in EUR/JPY, EUR/USD Rates Advertisement
Euro Forecast Overview:
The Euro is proving resilient despite a resurgent US Dollar, and it now may be finding the footing needed before attempting another turn higher.
Rising political risks in Italy and the Netherlands has been shrugged off by the Euro, as has some dovish jawboning by the European Central Bank.
Per the IG Client Sentiment Index, the Euro still has a bullish bias in the short-term.
Euro Dealing with Political Risks…?
The Euro has been plagued by poor vaccination rates, trailing both the post-Brexit UK and the post-Trump US, and now dual political crises in Italy and the Netherlands have emerged. And yet…the Euro does not seemed burdened. European bond yields are not shooting higher, perhaps because the European Central Bank has issued some dovish jawboning at its recent policy meeting. But even then, the dovish remarks about the Euro hav
Euro Forecast: Deeper Setbacks Take Foot in EUR/JPY, EUR/USD Rates Advertisement
Euro Forecast Overview:
The Italian government is on the verge of failing, while the Dutch government collapsed two months prior to elections. Political risk is weighing down the Euro.
EUR/USD has been on worse footing than EUR/JPY as the DXY Index continues its climb.
Per the IG Client Sentiment Index, the Euro still has a mixed bias in the short-term.
Euro Dealing with Political Risks
There’s a great deal of attention on the United States right now, if its on the second impeach of outgoing US President Donald Trump, the staggering climb in COVID-19 infections and deaths, or incoming US President-elect Joe Biden’s stimulus plan. All of this attention on the United States has sapped attention span for many market participants, who may not be paying attention to what’s happening across the pond in Europe.