EURUSD:
EUR/USD hit a new weekly high near 1.1610 during late Asian trading on Tuesday. The major currency pair strengthened amid a sharp sell-off in the US dollar (USD) after US President Donald Trump announced a ceasefire between Israel and Iran.
The truce between Israel and Iran has increased investors’ appetite for risk and reduced demand for safe-haven assets such as the US Dollar. The U.S. Dollar Index (DXY), which tracks the dollar’s value against six major currencies, fell sharply to 98.10 from a two-week high of 99.42 on Monday.
Federal Reserve (Fed) chief Michelle Bowman said Monday she would favor an interest rate cut at the next meeting in July if inflationary pressures remain muted. Bowman’s comments echoed those of Fed chief Christopher Waller, who said on Friday that he thought the U.S. central bank might consider a rate cut in July.
Trade recommendation: BUY 1.1625, SL 1.1545, TP 1.1725
Origin: FreshForex
