Sep 27, 2022 9:00 PM +05:00
VOT Research Desk
EURUSD – DISCUSSION POINTS
Above 0.9600, the euro continues to fluctuate but lacks clear path. There are still rumors of Nordstream sabotage
After this morning’s stronger-than-expected data out of the US, EURUSD is still holding above 0.9600.The US Dollar Index fell as low as 113.33 during the overnight session on the back of strong consumer confidence data.
The dollar appears to be the only currency in play at the moment, as G10 peers have seen their currencies fall in recent weeks. As a result of historic market fluctuations, the Bank of England issued a statement yesterday, when Sterling fell below 1.04 in a mini “flash crash.”The debate could be sparked by further depreciation toward the 0.9000 area, despite the fact that the ECB has yet to indicate that it will implement such measures.
A recent interruption to the Nord Stream pipeline has caught the attention of many, as Europe continues to scramble to secure energy supplies for the upcoming winter. What appeared to be gas leaks at first glance may actually be much more serious issues. Monday’s leaks were followed by two significant explosions, according to the Swedish National Seismic Network, which prompted some to speculate that the disruption might actually be sabotage. It could elevate continental geopolitics to new heights if this is the case.
It remains extremely challenging to envision any sustained upside for the Euro in light of such a challenging fundamental backdrop. The EU’s near-term prospects continue to be heavily impacted by war and slowing growth, and financial markets are still subject to an aggressive Federal Reserve.
The EURUSD has managed to stay above the crucial psychological level of 0.9600 after the shocking decline that occurred last week. A descending triangle has formed as a result of this support level and the trend line resistance, which may see the bearish trend continue. The price may move toward longer-term trend line support below 0.9500 if this support breaks.
