Yahoo Finance Euro Has Had a Horrible Week
The Euro has had an absolutely horrible week, and quite frankly I do not think there is any other way you can put it. We gapped lower to kick off the week as tensions around Ukraine continue to get worse, as we are now in a full-fledged war. This of course makes people nervous about putting money into the European Union as the wars on the doorstep move that region.
EUR/USD Video 07.03.22
Furthermore, the European Central Bank is nowhere near tightening monetary policy while the Federal Reserve most certainly will be doing so later this week. In fact, Friday really started to get things moving in a drastic fashion as the jobs number in the United States smashed expectations, clearing the way for the Federal Reserve to do drastic action.
Beyond that, interest rates in America have been going higher for a while anyway, and the German Bund is now backing negative-yielding territory. In other words, there is really no reason whatsoever to own the Euro at this point unless, of course, you live there. All things being equal, we are a bit oversold so I would anticipate a bounce. That bounce will more than likely be sold into again, so look to short-term charts in order to find your entry point. As I record this, we are threatening the 1.09 level, and while the direction was not a huge surprise, the viciousness of the move certainly was. With that in mind, I have no interest in buying this pair anytime soon, as I believe that the problems in the European Union still have quite a way to go.
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This article was originally posted on FX Empire
