The EUR/USD exchange rate is on a winning streak, climbing for the third day in a row and reaching one-week highs. This surge is largely due to growing trade concerns, which are eroding confidence in the US Dollar.
The US-China trade war is back in the spotlight, with President Trump's recent comments doing little to ease market worries. Despite attempts by his Treasury Secretary to downplay the situation, the Federal Reserve's Beige Book report highlights the impact of trade tariffs on employment and business growth, further weakening the Dollar's position.
But here's where it gets controversial... The Fed's assessment of a resilient US economy contrasts with the reality on the ground. Consumer spending is down, and employment demand is muted, indicating a potential slowdown. This raises questions about the Fed's future policy decisions and their impact on the Dollar.
In the Eurozone, the Trade Balance and President Lagarde's speech will provide insights into the Euro's performance. Meanwhile, the US session will focus on the Philadelphia Fed Manufacturing Survey and speeches from Fed policymakers, offering a glimpse into the economic landscape.
And this is the part most people miss... The technical analysis of EUR/USD shows a potential trend shift, with price action breaching a key pattern. Bulls are eyeing the channel top at 1.1670, but a move below certain levels could bring the Euro back down.
The US-China trade war continues to dominate headlines, with Trump's return to power reigniting tensions. The economic conflict, which began in 2018, has seen tariffs imposed on both sides, impacting global supply chains and reducing spending.
So, what's next? Will the trade war escalate further, or will the upcoming meeting between Trump and Xi Jinping bring a much-needed resolution? The market awaits with bated breath.
What are your thoughts on the current state of the US-China trade war and its impact on global markets? Feel free to share your opinions and predictions in the comments below!
