Euro to US Dollar
- By date
- Metadoro first
The single currency continues to rally. It is benefiting from a recent retreat in U.S. Treasury yields, from multi-year heights of almost 5% to the levels below 4.5% for 10-year public bonds. This decline is associated with the widely expected rate hike pause by the Federal Reserve. With the lack of new evidence to confirm the case, the crowds strongly believe in it. The Fed fund futures' market is currently pricing in the first rate cut before June 2024, which looks to be quite enough for the EUR/USD to eye the key 1.10 barrier. This is the nearest goal of the bulls, which can be exercised from the technical point of view. Stocks are holding firm after long holidays, which also support further upside moves for the Euro, based on weaker demand for the Greenback as the usual safe-haven asset. Therefore, investors are rather bearish on Treasuries, putting the Dollar under pressure. A temporary return for the Euro to test intraday lows near the 1.09 round figure is still on the table, yet buying these dips would probably be a good idea before an advance towards higher goals.
The U.S. consumer confidence indicator climbed after three straight monthly declines, despite most households anticipating a recession over the next year. It increased to 102.0 from a downwardly revised 99.1 in October. Analyst estimated that the index would rather go down to 101.0 from the previously reported 102.6. As CB data in October originally was even better than now, and today it signalled a possible change in the spending wind direction, then chances for volatile intraday movements rose, with the main vector on the currency market probably unchanged.
Euro to US Dollar
- The pair has the highest liquidity in the market and a vast number of trads are made with the pair. So, its movements largely indicates the behavior of the currency market in general. The pair is the easiest for technical analysis as it mostly follows the rules of it;
- The pair is likely the first one that every novice will meet during his/her first days in trading;
- Brokers usually have the lowest or zero trading fees on the pair. Brokers sometime give positive swaps on the pair, so a trader may make some money while keeping it for the longer term, and getting the profit on positive swap;
- The U.S. Dollar, or Greenback, is the leading currency in this pair, so it has the most influence on its movements. So, factors affecting the U.S. Dollar should be especially highlighted during technical and fundamental analysis of the pair;
- The EUR/USD is largely driven by two major economies and actions of the two largest central banks – The Federal Reserve (Fed) and European Central Bank (ECB). So, a trader should be focusing on macroeconomic data for both economies, including GDP, Consumer Price index (CPI), labour market indications, and statements of the central bank officials with a focus on the top officials of the Fed and ECB;
- U.S. 10-year Treasuries yields to German 10-year Bund ration is an indication of the strength of either currency. The higher the value, the stronger the Dollar;
- EUR/USD has a strong correlation with other European currencies, like the British Pound to the U.S. Dollar (GBP/USD) or the U.S. Dollar to the Swiss Franc (USD/CHF), and with cross rates of the Euro to other currencies. The pair has a strong exposure to USD/JPY, USD/CAD, and some other currency pairs.
|Contract value||100000 EUR|
|Date||Short Swap (pips)||Long Swap (pips)||No data|
|Minimum transaction volume||0.01 lot|
|Maximum transaction volume||70 lots|
|USD Exposure||Max Leverage Applied||Floating Margin|