Dollar Selling on FOMC Rate Cut Expectations
Daily Market Report ## Fundamental Analysis
EURUSD Rising Toward 1.18
Strong upward momentum with 10SMA acting as support
Targeting Round Number
EURUSD is trading in the upper 1.17s with the 10-day moving average acting as support.
We believe this is due to widespread dollar selling across the market. The dollar weakness is primarily driven by near-certain expectations of a rate cut at today and tomorrow's FOMC meeting.
The US NY Fed Manufacturing Index unexpectedly turned negative with a sharp decline, showing that economic recession is beginning to materialize in the data. Additionally, strict immigration policies combined with tariff uncertainties are casting a shadow over the entire manufacturing sector.
Looking at the chart from a medium to long-term perspective, the pair is moving within an ascending channel and approaching the upper boundary. The recent high of 1.1830 is the key level to watch for a potential breakout.
While both the US and Europe face various accumulated challenges, the euro is currently showing relative strength.
Today's Key Economic Indicators
| Economic Indicator/Event | Japan Time |
|---|---|
| UK Employment Data | 21:30 |
| US Retail Sales | 21:30 |
Risk Disclaimer
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
