EURUSD rises on dovish Fed and Eurozone sentiment.
EURUSD under the strong bullish pressure as the result of the mutually reinforcing euro optimism and the dollar negativity spreading across the currency markets today. The USD outflows follow the previous comments by Fed Chair Jerome that the central bank will not tighten its policy until the economy improves. This is reversing the previously taken long USD bets on the possibility of the increased interest rates in USA – driving EURUSD up. The pair is also underpinned by the fact that Euro zone economic sentiment rose more than expected in February, strengthened by optimism in industry, services and among consumers – which is boosting Eurozone inflation expectations among the traders – a strongly bullish signal for the euro.
Expect buyers on downward corrections.
Next resistance to watch – 1.2340
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