EUR/USD Rate Ripping to Two-Year Highs Leaves EUR at Resistance at 1.1125. EUR is well above the major currency pairs of U.K. Pound Sterling and the U.S. Dollar. The EUR/USD Rate Ripping to Two-Year Highs Leaves EUR at Resistance at 1.1125.
It appears that the European economy will continue on its slow recovery path. This is due to the weak Euro exchange rate and a lack of economic stimulus by both governments in the Eurozone. Many countries in the Eurozone are already in recession and the Euro zone has an unemployment rate of over 11%. The Euro is now below the dollar on a trade to trade basis, which makes this a very volatile market.
The European Central Bank (ECB) has been pumping liquidity into the market, in an attempt to stimulate economic activity. This has also been successful in bringing down the Euro to a lower trade to trade rate. Many experts believe that this will result in a sharp increase in the trade to trade rate for the Dollar.
If the trade to trade rate rises, many traders will be forced to sell their assets. This will push the Euro back up against the USD, which will result in more weakness in the Euro as it has already done on a trade to trade basis. This means that if you are looking to buy EUR, you should do so with caution.
If the trade to trade rate falls, many investors will be forced to sell their assets, leaving you in the weaker position. This will make the EUR/USD Rate Ripping to Two-Year Highs extremely risky.
With the European economic outlook in place, the U.S. Federal Reserve is expected to increase interest rates later this month. This means that there is a greater chance of a EUR/USD Rate Ripping to Two-Year Highs in the future.
In addition to the political and economic outlook, the U.S. economy is expected to slow down from its current growth level. This will lead to a reduction in consumer spending, which will reduce the demand for the Euro in global markets. As a result, the EUR will fall and this will cause a weakening of the trade to trade rate.
This means that a strong Euro area will continue to develop, which will result in a weakening of the trade to trade rate. and a stronger USD.
A weakened economic outlook in the U.S. will also put further pressure on the Euro. The weakening of the U.S. economy will have an effect on the Euro because it is seen as having negative effects on global markets.
It will become increasingly more difficult for the Euro to grow at a steady rate, because of the weakening of the European economy. As such, the trade to trade rate will begin to move upwards again, with greater strength being felt in the U.S., as a result.
This will mean that the trade to trade rate will continue to strengthen. as the strength in the Euro becomes apparent to investors.
If the trade to trade rate starts to weaken, the EUR is likely to fall to a new low. and the EUR/USD Rate Ripping to Two-Year Highs is more likely to be achieved, but this will be offset by strong trading conditions.
If the U.S. political and economic outlook weakens, then the EUR can move up to a higher base, resulting in the EUR/USD Rate Ripping to Two-Year Highs in the future. However, if the EUR strengthens then the EUR can fall back to a lower level, resulting in the trade to trade rate falling. The main problem is that the EUR is set to weaken at the expense of its main competitor, the U.S Dollar.