We are taking a midweek look at the EUR/USD as many may be wondering what is going on with the financial markets.
Equities around the world are facing bearish pressure and interestingly bonds are too. Usually they are at opposites and during the rare occasions that they are aligned, it is vital that we play close attention.
Looking at the EUR/USD daily chart above we noted that the currency pair is rising. This means that the euro is getting stronger versus the US dollar. A test of the bullish resistance of 1.16 may be in sight.
Many are attributing the current market rout to the differing views of the US Federal Reserve and the President of the United States. It was reported that Donald Trump blamed the Wednesday sell off on the US Federal Reserve.
It was also reported that the US Federal Reserve gave confusing signals on whether the direction forward would be accommodative or tightening. The pace of interest rate hikes came in question and probably resulted in some US dollar sell off.
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