EURUSD:
EUR/USD continues its series of declines for the fourth consecutive session, trading around 1.1730 during Asian hours on Monday.
Fed Chairman Jerome Powell said at a press conference after the meeting that growing signs of weakness in the labor market explain why officials decided it was time to cut rates after keeping them unchanged since December amid concerns about inflation caused by tariffs. The Fed’s rate forecast, or so-called “dot plot,” showed that two more rate cuts are expected this year.
The EUR/USD pair also faced difficulties due to problems with the euro (EUR): last week, hundreds of thousands of people protested in major French cities, calling on President Emmanuel Macron and newly appointed Prime Minister Sébastien Lecomte to abandon the spending cuts introduced by former Prime Minister François Bayrou.
European Central Bank Governing Council member (ECB) Mario Centeno said on Friday that “the next step is likely to still be a rate cut,” adding that inflation cannot remain below 2% for too long and noting that risks to inflation remain tilted to the downside.
Trade recommendation: SELL 1.1705, SL 1.1735, TP 1.1655
Origin: FreshForex
