Forex Fundamental Pressure Builds for EURUSD Reversal| MENAFN.COM

Saturday, 28 January 2023 11:00 GMT

Forex Fundamental Pressure Builds for EURUSD Reversal


(MENAFN- DailyFX)

Talking Points:

• The same Eurozone CPI reading that spurred the ECB to a November rate cut drop to a record low Tuesday

• Tepid inflation opens the door to easing, but the real impetus is financial 'tail risk'

EURUSD is leaning towards reversal on the Fed Taper and ECB easing lean, but we need catalysts

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The same Euro-area inflation reading that prompted the ECB to cut rates back in November hit a record low with Tuesday's update. The fundamental argument for EURUSD bear wave is growing quickly. Where the Fed is embarking on the long road of Taper, the European policy group is seeing the ingredients for fresh stimulus to back up exceptionally low rates. So then, why didn't the benchmark pair tumble this past session? There are still key event milestones ahead and the impetus for new LTRO's isn't secured. We look at the EURUSD as a focus for the relative monetary policy theme as a price driver in today's FX Trading Video.

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