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US dollar depreciation: EUR USD, USD JPY and AUD USD analysis IG International

Posted on March 23rd, 2023

Additionally, the ECB has expressed concern regarding the potential adverse impact of US tariff policies on European economic growth. Market consensus indicates expectations for an additional two to three rate reductions before year-end. IG does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. IG is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such. Copyright © 2025 FactSet Research Systems Inc.© 2025 TradingView, Inc.

Slight Bounce by the Dollar Despite Weaker GDP

You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of oanda review losing your money. Past performance is not necessarily indicative of future results. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.

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However, forex is a volatile market and currency values fluctuate continuously. So, whether EUR and USD are safe currencies will always depend on liquidity, volatility and economic events (such as Brexit). EUR/USD (or euro-dollar) does not have a very long history, as the euro only came into existence as a digital currency in January 1999 and a physical currency in 2002. However, this young forex pair quickly became the most popular by trading volume. The best time to trade EUR/USD is when both markets are open (between 1pm and 4pm UK time). fx choice review During this open period, EUR/USD tends to be more liquid and spreads are generally tighter.

Outside of these times, there tends to be more volatility, which could also provide opportunities to profit. The information on this site is not directed at residents of the United States and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. The value of shares and ETFs bought through an IG stock trading account can fall as well as rise, which could mean getting back less than you originally put in. Please ensure you fully understand the risks and take care to manage your exposure. Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd. The best EUR/USD trading strategies to use will depend on your personal trading style.

Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Gold prices pared some of their early-week losses and hovered near $3,250 on Tuesday afternoon, supported by a cautious market tone and softer-than-expected US April CPI data, which helped XAU/USD stabilise. IG is a trading name of IG Limited a company registered at 2702 & 2703 Level 27, Tower 2, Al Fattan Currency House, DIFC, Dubai, United Arab Emirates. IG is authorised and regulated by the Dubai Financial Services Authority (DFSA) under reference No.

While the Fed looked to increase interest rates in response to a strengthening economy after 2008, the ECB had to keep interest rates low and introduce a quantitative easing programme to boost spending in Europe. When trading euro-dollar, you should watch out for economic reports, political events and monetary policies that move the price of EUR/USD. Recurring events such as European Central Bank (ECB) and Federal Reserve Bank announcements, as well as developments concerning Brexit and US-China trade discussions impact the price of euro-dollar. One of the most closely watched currency pairs today is EUR/USD – also called the euro-dollar. This forex pair is particularly interesting in light of Brexit and the US-China tensions. Find out how you can take advantage of EUR/USD price movements with IG.

There are many forex strategies to choose from, enabling you to determine when it’s time to enter and exit a trade. These include the RSI indicator strategy, momentum indicator strategy and breakout trading strategy. Open a dowmarkets free, no-risk demo account to stay on top of market movement and important events.

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• Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.
• The atypical surge in long-term US treasury yields corroborates this assessment.
• IG is not a financial advisor and all services are provided on an execution-only basis.
• We have not established any official presence on Line messaging platform.
• Countries started to do more business with each other after the euro’s introduction due to the lack of currency risk, with the resultant rise in gross domestic product (GDP) growth across the eurozone causing EUR/USD’s price to surge.

Support levels are anticipated at approximately 1.12, with a critical secondary support at the 200-day simple moving average (SMA) of 1.07. However, several counterbalancing factors may constrain the euro’s upward trajectory. The European Central Bank (ECB) implemented a 25-basis-point interest rate reduction earlier this month, citing persistent disinflationary trends.

The euro – now used by 19 EU countries – is the second largest, with the Japanese yen (JPY) in third place and the pound (GBP) in fourth. Get The Week Ahead, our free rundown of the coming week’s market-moving events and forex pairs to watch, delivered to your inbox every Sunday. Stay on top of upcoming market-moving events with our customisable economic calendar.

The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. 71% of retail client accounts lose money when trading CFDs, with this investment provider. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money. We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform.

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• The price of gold managed to find support slightly above last week’s low as the US dollar rally seems to be momentarily running out of steam.
• Consequently any person acting on it does so entirely at their own risk.
• The years 2008 to 2014 were marked by economic crises – first in the US and then in the eurozone – which played havoc with EUR/USD’s price.

Market pricing currently reflects a 97% probability of a Reserve Bank of Australia (RBA) rate reduction at its 20 May meeting. Traders anticipate four to five 25-basis-point (bp) cuts by year-end, potentially bringing cash rates below 3%. Should the RBA adopt a more measured approach to monetary easing, this would provide additional support for the Australian dollar. Technical analysis reveals EUR/USD within a robust ascending channel with medium-term potential to target the 1.19 level, assuming the current rally matches the magnitude observed between September 2022 and July 2023. However, considering the steep year-to-date appreciation, a consolidation phase may precede further advances.

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Your profit or loss will depend on how accurate your prediction is, meaning it is possible to profit whichever way the market moves. The atypical surge in long-term US treasury yields corroborates this assessment. Forex markets don’t close very often, but positions can make or lose money every night. Crunch the numbers using our data including forex rates, or prices, spreads, and swap rates for holding positions overnight. Countries started to do more business with each other after the euro’s introduction due to the lack of currency risk, with the resultant rise in gross domestic product (GDP) growth across the eurozone causing EUR/USD’s price to surge. The years 2008 to 2014 were marked by economic crises – first in the US and then in the eurozone – which played havoc with EUR/USD’s price.

Open a free, no-risk demo account to stay on top of forex movement and important events. Technical analysis indicates AUD/USD at a pivotal juncture as it attempts to breach its horizontal consolidation range and establish position above the 200-day moving average (SMA). A decisive break above this moving average may signal completion of the corrective phase, with potential for extension toward the 0.67 level. Apprehension regarding US economic resilience continues to intensify, evidenced by deteriorating employment statistics and consumer confidence metrics. Concurrently, Tokyo core inflation has accelerated to 3.4%, reaching its highest level in two years.