Investing.com - Financial Markets Worldwide
⭐ Start off 2025 with a powerful boost to your portfolio: January’s freshest AI-picked stocksUnlock stocks

FOMC, USD Pressure Euro

ByThe Pattern, Price & Time Report
AuthorJames Hyerczyk
Published 07/12/2012, 03:02 PM
Updated 05/14/2017, 06:45 AM

The rally in the U.S. Dollar was pressuring the September Euro this morning. After trading sideways-to-lower earlier the week, the Euro accelerated to the downside after the release of the FOMC minutes from June late Wednesday.

The report showed that the Fed was not strongly considering additional stimulus at its last meeting and that additional stimulus will probably not implemented unless the economy shows significant signs of weakness.

The news triggered a flight-to-safety rally into the U.S. Dollar after traders abandoned higher risk assets. With hopes of additional stimulus fading, the dollar is expected to continue to rise over the near-term, pushing the Euro closer to its June 2010 bottom at 1.1876.
Weekly Nearby Euro
The Weekly Nearby Euro chart clearly shows the market walking down a Gann angle from the 1.4925 top from a year ago. Additionally, the single currency has crossed over to the bearish side of a channel-down chart pattern indicating weakness.
 
The weekly swing chart is down and a new swing top has been formed at 1.2759. A move through this level will turn the main trend to up, but the chances of this occurring are remote at this time.
 
The Fed will meet next on July 31 -- August 1. If they are watching the economy for weakness, traders should pay close attention to this month’s remaining economic reports. In addition, traders should continue to monitor interest rates in Spain and Italy as rising rates could accelerate the move to the downside.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.