"While traders see little chance of a Fed interest rate hike this week, an increase is seen as much more likely in June."
– Alexandria Arnold and Dennis Pettit, Bloomberg
Pair's Outlook
On Wednesday morning the common European currency had slightly retreated against the US Dollar, as the currency exchange rate continued to trade above the 1.09 mark. The reason for the almost flat trading was the fact that the markets are expecting fundamental data in the form of the EU GDP and the US Federal Funds Rate later in the day. Meanwhile, from a technical perspective the currency pair remains below a strong resistance cluster, which surrounds the upper trend line of a long term ascending channel.
Traders' Sentiment
SWFX traders continue to short the Euro, as 61% of open positions are bearish. Meanwhile, 52% of trader set up orders are to sell.
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