Forex News

US GDP Data At Top of Agenda as ECB Causes Fluctuations in EUR-USD

The Forex markets have been in a sustained rally throughout the past few months due to the immense uncertainty in the investment climate. The trade war between the United States and China, coupled with the issues with relation to rate cuts, has proven to be major issues in this regard. In such a situation, investors have leaned towards protecting their capital and hence, a lot of money has flown into the United States dollar. Consequently, the price of the US Dollar has increased in relation to the Euro at a steady pace as well and the next few days are going to be extremely important in the Forex markets.

The Euro has pretty much stabilized after it emerged that the European Central Bank is going to cut rates, As per the one of the Top Forex Brokers. Although the rate cuts might not be in sync with the expectations of many traders, the news has still calmed the markets somewhat. However, the European Central Bank’s policies have caused a great deal of fluctuation in the EUR-USD pairing and it remains to be seen how it all pans out over the next week. The most important event today is the release of the GDP data from the United States amidst overall pessimism with regards to global growth. If the data proves to be robust or defies expectations, then it is almost certain that the US Dollar is going to fall in price substantially.

A good performance will trigger increased activity among investors and lift the overall investment sentiment across the world. However, another very important event is going to take place on the 30th and 31st of July. The United States Federal Reserve is going to meet for a set of meetings before announcing their stance on rates. Investors and traders had expected the FED to cut rate by 50 basis points, but now it is being reported that the rates are only to be cut by 25 basis points. The realization has resulted in the rise in the US Dollar to its two week high. 

13 posts

Kathleen Davis

About author
Kathleen Davis worked as a freelance writer. She loves writing on topics like forex and cryptocurrencies. She is a cryptocurrency analyst and works as a cryptonews writer for our team.
Related posts
Forex News

Understanding the Ins and Outs of Forex Trading in India

The past few years have witnessed a burgeoning surge of forex trading or foreign exchange trading in India, and it seems it…
Forex News

Banxso: Limit Your Risks By Portfolio Diversification

Current Market Scenario The shockwaves from the war in Ukraine have tested the resilience of the global financial markets. Hot on the…
Forex News

How to Select a Reliable Forex Broker in 2021

The Forex market, the largest financial market in the world, has a turnover of nearly $4 trillion per day. Despite its large…