EUR/USD is trading like it was in the early 2000s. Could the ECB meeting push GBP/USD up?

The dollar continued to rise, supported by higher Treasury yields ahead of the Fed’s monetary policy meeting in September. Clearly, the market is being driven by expectations of central banks. The global central bank will raise interest rates further, in which the Fed has full leadership. Most likely, it will make a 0.75% increase, with the ECB despite the onset of recession in Europe.
At the time of this writing, EUR/USD is trading near all-time lows in the early 2000s. Buy now when the price drops; However, there are many reasons that prevent traders from taking such actions. One example is the situation of the eurozone economy, which is very bad in the midst of the conflict in Ukraine. The crisis is ongoing and it is likely that full-blown unrest will begin soon.
But the euro could rise a bit if the ECB raises interest rates to 0.75%. It will then move sideways ahead of the Fed meeting, reacting nervously to ECB decisions and upcoming economic data, as well as the monetary policy outlook. After the Fed meeting, the Euro will fall, which reinforces the idea of ​​selling the pair rather than buying it.
The pair is consolidating slightly above 0.9900. A move up to 0.9975 is likely, but trading is most likely going sideways.
This currency pair is trading above 1.1

  1. Upcoming economic data, as well as the ECB meeting, could push it to 1.1590. Relevance 09:00 2022-09-09 UTC 2 The Company does not provide investment advice and the analysis performed does not guarantee results. The market analysis published here is intended to raise your awareness, but does not provide guidance for making a trade.

Michael Cooper

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