EUR/USD Eclipses 1.1325
Shain Vernier • 1 min read
The Greenback is getting blasted today vs the majors. A weaker-than-expected U.S. Non-Farm Payrolls report is the likely culprit, further promoting the idea of upcoming FED rate cuts. While this idea has breathed new life into stocks, the USD has taken a beating.
On the forex front, one of the biggest daily winners has been the EUR/USD. Rates have extended weekly gains, testing the waters above 1.1325. It appears as though traders of all kinds are piling onto the FED rate-cut train before it leaves the station.
EUR/USD Rallies Above 1.1325
In a Live Market Update from Thursday, I outlined the importance of the expanding megaphone pattern on the daily timeframe. If you missed the update, feel free to check it out here.
At press time, the EUR/USD is trading well off intraday highs, near the 1.1325 quarter-handle. Although the short-term trend is up, the bullish pressure following this morning’s NFP release looks to be subsiding.
Overview: From a practical standpoint, this is no time to be holding Greenbacks. Investors realize this and are going long equities, gold, cryptos ― pretty much anything instead of dollars.
Given the current stance of the FED, this week’s sluggish USD may not be a short-term trend. Today’s CME FEDWatch Index is projecting the odds of a June FOMC rate cut to stand at 22.7%, up 6% from just yesterday. The markets are quickly souring on the Greenback and there is a very real chance that it will be defined by a bear market during the second half of 2019.