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πEuroβnext global reserve currency?
The euro (EUR) gained 0.2% as investors remained cautious amid growing concerns over the U.S.'s comprehensive tax and spending bill and its impact on the nation's fiscal outlook. The proposed legislation could significantly widen the federal deficit, fuelling scepticism about the long-term sustainability of U.S. debt and dampening appetite for dollar-denominated assets.
π Possible effects for traders
This uncertainty has added to the broader erosion of confidence in U.S. financial instruments as markets assess the risks of increased borrowing against a backdrop of already elevated debt levels. With investors reassessing the relative attractiveness of U.S. assets, the U.S. dollar's (USD) recovery remains limited. Global markets are increasingly sensitive to fiscal developments and their implications for monetary policy and interest rates.
'In a way, all roads have led to a weaker USD', said Chris Weston, Head of Research at Pepperstone. 'Higher perceived U.S. deficits have raised concerns about increased future Treasury issuance, pushing up term premium and seeing people migrate away from the USD'. Meanwhile, European Central Bank President Christine Lagarde said on Monday that the euro could become a viable alternative to the U.S. dollar, the global reserve currency, if governments can strengthen the bloc's financial and security architecture. 'The ongoing changes create the opening for a 'global euro moment', Lagarde said at a lecture in Berlin. 'The euro will not gain influence by defaultβit will have to earn it'.
EURUSD remained relatively unchanged during Asian and early European trading sessions. Today, two U.S. macroeconomic reports will come out and may affect the market: Durable Goods Orders at 12:30 p.m. and CB Consumer Confidence at 2:00 p.m. UTC. Better-than-expected data could support the U.S. dollar, pulling the euro lower. In contrast, lower numbers may support the bullish momentum in EURUSD.
πGBPUSD reaches highest levels since 2022
GBPUSD continues to make new highs and reached 1.35937 on Monday.
π Possible effects for traders
Market sentiment improved following U.S. President Donald Trump's decision to delay imposing 50% tariffs on EU goods until 9 July. The decision boosted global risk appetite and further supported the British pound. The pound was already in a bullish trend, bolstered by stronger-than-expected domestic data pointing to sustained consumer activity despite broader economic challenges.
U.K. retail sales climbed 1.2% in April, marking the fourth consecutive monthly gain and signalling continued consumer resilience in the face of tax increases and international trade uncertainty. However, elevated inflation remains a key concern, with the headline inflation holding firm at 3.5%, surpassing market forecasts. In response, interest rate expectations have shifted, with markets are now pricing in a 50% chance of a Bank of England (BoE) rate cut by August. Meanwhile, the likelihood of a second cut by year-end grows as policymakers navigate the balance between inflationary pressures and slowing growth momentum.
GBPUSD rose slightly during Asian and early European trading sessions. The pair will likely experience significant volatility today as Andrew Hauser, Executive Director of Markets at BoE, will give a speech at 11:00 a.m. UTC. He may provide clues on the future changes in U.K. monetary policy. In addition, the U.S. will release two important macroeconomic reports: Durable Goods Orders at 12:30 p.m. and CB Consumer Confidence at 2:00 p.m. UTC. Both reports will impact the U.S. dollar, but the labour market figures are the most important. If jobless claims exceed expectations, GBPUSD may move higher, possibly above 1.36000. Lower-than-expected results may extend the short-term downtrend in GBPUSD and push the pair below the critically important 1.35000 level.
β‘οΈ USDJPY!
π΄ On the H4, USDJPY breaks above the bullish falling wedge.
π The price faces the 200-MA as a resistance, while the Momentum crosses the 0-line upwards, suggesting bullish momentum.
TradeIdea
πΌ Buy USDJPY on a breaking above the 143.80;
π― Target: 144.80.
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+1
LETβS GOOOO TP2//110pipsβ
CLOSE our profit nowβΌοΈ
Let's be smart. If you plan to keep chasing, secure your gains and trail your SL to the entry price.π
606 Usd in 5 Minutes broπππΌ
606 Usd in 5 Minutes broπππΌ
