Will the EUR/USD Uptrend Continue? Here are the Factors Driving It Higher

Posted by TopstepFX on February 02, 2018

EUR/USD was in a strong uptrend throughout all of 2017, rising more than 14%. The Euro, in general, was the best performing major currency of 2017. What made the move so impressive was that it was somewhat unexpected. As discussed, the U.S. Dollar came into the year on a strong note. However, fears of political instability subsided, Eurozone growth surged, and the European Central Bank (ECB) was forced to begin withdrawing its stimulus.

Those three factors turned the market around. 

As the chart below shows, the first major breakout in EUR/USD came mid-April on the weekend of the French presidential elections (April 23) when it became clear that Emmanuel Macron would defeat Marine Le Pen. The market feared Le Pen would ride in on a global wave of populism and might pull an upset – potentially leading the French to exit the EU. That did not happen, and the EUR/USD surged. 

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Topics: Forex, US Dollar, Euro, EUR/USD

3 Things Moving the Forex Market This Week

Posted by TopstepTrader on January 28, 2018

The U.S. Dollar's rout continued in the past week, where it was impacted by political jawboning. This time, it was the U.S. Treasury Secretary, Steven Mnuchin, who seemingly reversed a 25-year-old strong Dollar policy

Mnuchin's statement was contradicted 24 hours later by U.S. President Donald Trump, who said that he would expect the U.S. Dollar to get "stronger and stronger" during an interview on CNBC. But that didn't help the Dollar recover much — and it fell to a fresh 3-year low. 

This week, eyes will turn back to the fundamentals driving the global economy: Tuesday's German CPI data, Wednesday's FOMC statement, and Friday's U.S. employment report. Here's why.

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Topics: Forex, Futures, Weekly Outlook, EUR/USD

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