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.

EUR/USD, Daily Chart
EUR/USD, Daily Chart

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.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
The USD is looking softer today after the unemployment claims showed a jump to the highest since October 2021 last week
2 days ago
0 0 vote
Article Rating
Notify of
Newest Most Voted
Inline Feedbacks
View all comments
4 years ago

Should we buy Euro USD