Sales in EURUSD Gain Speed!

Sales in EURUSD Gain Speed!

Sales in EURUSD Gain Speed!

After the FOMC meeting minutes announced in the USA, after the dollar gained momentum again, a pullback movement occurred in the parity at a rate of up to 1.1780. While it is noted that there is a difference of opinion among the members in the FOMC minutes, it is stated that the conditions for reducing asset purchases have not yet been met. In addition, it can be said that the expectation that the bond buying rate, which we can see in the FED's minutes, will decrease after the inflation concerns in the markets, keeps the dollar side strong. In addition, we see that the number of JOLTS vacancies in the USA reached a record level by increasing to 9 million 209 thousand in May. On the other hand, it is seen that there is a slight increase in the weekly unemployment benefits with 373 thousand people. Despite this development, it can be said that the downward trend in the parity has increased due to the pressure on the Euro side from the dollar.

In Euro Zone developments, the statement that the ECB is preparing to allow inflation to exceed its 2 percent target brought some uneasiness about the economy. In addition, retail sales data, which exceeded expectations in May, was added to the ZEW index, which remained below expectations throughout the week. The European Commission, on the other hand, announced that it expects the Eurozone economy to grow by 4.8 percent in 2021 and inflation to be 1.9 percent.

After all these developments, in case the pricing below the 1.1834 level comes to the agenda in the parity, which is under the dollar pressure, it can be expected that the pullbacks will gain momentum within the framework of the 1.1770 and 1.17 support levels. However, in pricing above the 1.1834 level, the rises can be expected to reach the 1.1890 level with the 1.1950 resistance.

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