EUR/USD: Fed rate cut sends the dollar plummeting
Eighth consecutive day of gains for the euro against the greenback.
EUR/USD Technical analysis, overview, strategies, and levels
The US Federal Reserve’s (Fed) surprise 0.5% rate cut ensured the US dollar was an underperformer in the FX market, and aided EUR/USD’s price in finishing higher in a volatile session. Eurozone data showed CPI (Consumer Price Index) figures at a worse than expected 1.2%, and its PPI (Producer Price Index) a notch below expectations. Its unemployment rate wasn't changed at 7.4%, though at this stage of more importance has been rate cut likelihoods that differ between the central bank of the US that offers a chance for a larger rate cut, as opposed to the ECB (European Central Bank) with fewer options given its key rate is at 0% and is already officially engaged in monetary easing with its bond purchasing program. Services PMIs (Purchasing Managers Index) are up next, expected to show more optimistic readings than Monday's manufacturing figures.
IG client* and CoT sentiment for EUR/USD
EUR/USD Chart with retail and institutional sentiment
*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.
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