Русский
EURUSD:
The EUR/USD exchange rate has been declining for the fifth consecutive trading day, as the price continues to test below 1.0800. The Euro is finding it difficult to regain its strength, as the absence of significant economic data from the EU leaves traders vulnerable to geopolitical headlines and market fluctuations resulting from US data releases.
On Tuesday, the US Conference Board (CB) reported a rise in one-year consumer inflation expectations, which rose to 6.2% in March from 5.8% in February. Consumers are understandably concerned about the ongoing high prices of necessities, particularly eggs, and the potential inflationary impact of tariffs imposed by the Trump administration. The Central Bank’s survey of consumer confidence also revealed a decline in future economic expectations, reaching a 12-year low of 65.2 in March, well below the 80.0 mark that typically signals a potential recession.
These concerns have been further compounded by a warning from Moody’s, a leading ratings agency, which has expressed concerns over the U.S. fiscal sustainability, particularly in light of mounting debt service challenges. Moody’s has also forecast that the country’s fiscal sustainability is likely to face a prolonged decline, a statement that could displease Donald Trump and his administration, who are currently in favour of a significant debt ceiling increase by Congress.
Trading recommendation: SELL 1.0770, SL 1.0840, TP 1.0675
Origin: FreshForex
