Hi, friends as I am writing here about how EUR/USD will react to upcoming events like BREXIT and Federal Reserves rate hike cycle.
Let see USD backdrop and forthcoming pattern. After somewhat two years of consolidation, the US Dollar finally got to a critical bullish breakout in the last two months of 2016. To many, the catalyst for this breakout came as a surprise: the US Presidential election. The unexpected win by Donald Trump defied popular opinion polls and helped the Greenback overcome its perceived limitations. The new President is seen as the candidate committed to significant change, and his extraordinary campaign promises hold unexpected benefits for the currency. Talk of a massive fiscal stimulus program bolsters expectations of meaningful growth while vows to crack down on perceived, unfair trade advantages for major peers charges inflation expectations. That translates into superior growth forecasts and a Federal Reserve motivated to accelerate its rate hike regime. Heading into the new year and presidency, the maintenance of and extension to the Dollar’s impressive bull trend now rests on these unique connections coming to pass – or a much more dramatic fate befalling…
Read article
Translate to English Show original