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EUR/USD Drama: Stuck Below 1.18 as the Stakes Soar!
- Eurozone CPI set to surge to 2% from 1.9%
- Lagarde and Powell gear up to spill vital secrets at Sintra!
- EUR/USD lingers around a four-hour high—what’s next?
Hold onto your wallets! The EUR/USD is teetering around the 1.18 mark after a stunning nine-day surge, hitting a thrilling year-high! All eyes are glued to the ECB’s central bankers’ summit in Sintra, Portugal, where the big guns—Lagarde and Powell—plan to chew over trade, the global economic landscape, and inflation, potentially dropping clues about the future of interest rates!
With eurozone inflation figures poised to spike to 2%, compared to 1.9% in May, could this be a game-changer? But wait! On Monday, those cooler CPI numbers in Italy and Germany may spell trouble ahead!
Meanwhile, the EU seems ready to embrace Trump’s universal 10% tariff, but they want the US to budge on lowering those hefty rates in pivotal industries—think cars and steel! The countdown to a pivotal trade agreement is on, with July 9th looming ever closer!
In a shocking twist, the US dollar is fumbling at a three-year low against its major rivals, thanks to bubbling fears over Trump’s tax bill expected to balloon the US fiscal debt by a staggering $3.3 trillion! Trump’s frustrations over sluggish trade talks are only adding fuel to the fire as massive deals remain unapparent before the July deadline!
USD/JPY Nose-Dives Amidst Trade Turmoil and Fiscal Nightmares!
- Trump’s tax cuts raise alarm bells in the market!
- Trade deals remain elusive—what’s the hold-up?
- USD/JPY plunges to a two-week low—can it recover?
The USD is floundering near a four-year low against major currency rivals as Trump’s looming spending bill sends shivers down investors’ spines, while unresolved trade deals intensify the anxieties! Fiscal worries have investors scrambling to find safe havens away from the dollar!
Attention shifts to the ticking clock for US trade deals as the July 9 deadline draws closer, with numerous agreements still hanging in the balance, keeping the dollar on the ropes!
Adding to the chaos, investors are recalibrating their expectations for quicker monetary policy easing following Powell’s recent testimony. His upcoming speech at the ECB forum is set to keep everyone on the edge of their seats!
And it doesn’t stop there! The Japanese yen is capitalizing on the dollar’s weakness, hitting its highest level in over two weeks, even amidst escalating tensions over US trade strategies! Trump is threatening new tariffs on Japan while his grip tightens on existing car tariffs!
In a surprising twist, Japan’s latest tankan survey reveals unexpected optimism among large manufacturers, highlighting their resilience against mounting external pressures!
USD/JPY Forecast: Will It Break or Hold?
After a failed attempt to break the critical 146 barrier, USD/JPY has taken a nosedive, heading for support at 142.50. It’s been a bumpy ride within this range since May!
Sellers, with the RSI hanging under 50, are eyeing a breakdown below 142.50, aiming for losses towards 140.00. But buyers will need to rally above 146.00 to create a lifeline back to 148.65!
