EURUSD BREAKING NEWS: WILL THE PAIR SKYROCKET OR TANK?

Now, let's address the euro-dollar movement. It's been quite unpredictable lately, hasn't it? The question on everyone's mind: parity or above 1.10? The recent momentum in the euro-dollar surge is primarily tied to the latest FOMC meeting and the concerning US economic growth trends. When I talk about economic reform, I'm not just referring to GDP figures. It's a comprehensive view of how the economy is faring overall.

Regarding the parity speculation, it's a tough call. Initially, I was more inclined towards figures around 1.45 but scaled back positions when it hit 1.45. Presently, I'm leaning more towards above 1.10. Why the shift? The US Federal Reserve has hinted at a pause in rates, and the December hike seems improbable now.

Most institutions, including major players in the market, anticipate the Fed to be done with hikes for now. The spotlight is shifting towards next year, comparing the more dovish stance of the Fed to the slightly more hawkish approach of the ECB. While the ECB maintains its tightening stance, the Fed might consider rate cuts next year.

This shift in dynamics is fueling the upward journey of the euro-dollar. Some reputable institutions  are eyeing 1.15 as a possible figure for the end of 2024. This gives us a head start in planning our trades for the future.

Now, a quick glance at leveraged fund positions—they haven't fluctuated much. There was a slight dip in the NZD, and we've observed a switch to the negative side on the Swiss franc. This week’s economic calendar isn’t bustling, but we do have some significant events, including FOMC and RBA minutes and German GDP on Friday.

While the market might seem opportunistic, our approach is slightly cautious since last week. However, opportunities will arise if your strategy and trading plan align.

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