Stocks and bonds have been rallying, while yields fall and the Dollar slips, as weak economic data fuels expectations that the Federal Reserve will aggressively cut rates later in the year. That theory will be tested when the Federal Reserve Open Market Committee (FOMC) meets later this week.
The Euro is seeing strength and making a run past 1.12 against the Dollar to start the new trading month. The uptick comes after seesaw action during the month of May and as focus turns to the next European Central Bank meeting on Thursday. A big move is expected, and traders will be watching for a break of the recent downtrend for signs that a reversal is underway.
Euro bulls have had little to cheer about lately. After losing 4.5% to the Dollar in 2018, the currency is again facing losses in the early parts of 2019. In fact, the 2% drop in the first quarter was its worst in four years. EUR/USD is now facing an important test heading into the next European Central Bank meeting this Wednesday, April 10.
Will this be the impetus leading EUR/USD on it's next leg lower?
We have a HUGE WEEK for markets ahead. Take a look at the economic events that are poised to move forex markets in the next five days:
- Monday, 10:30 PM ET: Reserve Bank of Australia
- Wednesday, 10:00 AM ET: Bank of Canada
- Thursday, 7:45 AM ET: European Central Bank
- Friday, 8:30 AM ET: U.S. February Non-Farm Payroll Report
Here’s a look at how all these events may shake out in the market.