EUR/USD Forecast 11/11 : Euro Recovery Falters (Video)

(MENAFN- Daily Forex) The euro has been weak on Tuesday, despite trying to rally right at the open. The CPI numbers in America only added to the pressure, as it looks like the Fed will have to remain tighter for longer.

EUR/USD

The euro initially did try to rally against the U.S. dollar during early trading on Tuesday, but has since fallen, exacerbated by the hotter-than-anticipated CPI figures coming out of the United States. With the CPI figures 0.1% higher than anticipated in both the core and regular CPI readings, this adds further pressure on the Federal Reserve to keep monetary policy somewhat restrictive.

Top Regulated Brokers1 Get Started 74% of retail CFD accounts lose money

The ECB, on the other hand, has been very noncommittal about its monetary policy and does not look ready to tighten, at least not quite yet. Beyond that, you have to worry about energy in the European Union this winter. That is still a very valid concern, and if that is going to be the case, the European economy is not going to be doing well, and that could cause the ECB to loosen policy.-p

img- src= data-src= class="img-responsive center LazyLoading" lazy=loading alt=image>The market has been consolidating between 1.1250 and 1.11

Regardless, the Americans continue to see plenty of inflation. There are plenty of headwinds out there to growth in general, and a lot of people are taking advantage of those positive real yields coming out of the United States, so it all adds up for a pro-U.S. dollar story on the margins

The market has been consolidating between 1.1250 and 1.11, and I think that probably continues to be the case. Eventually, we will break out of this sideways directional box, and with that being the case, I think it gives us the next clear sign.

EURUSD Chart by TradingView

Rallies at this point in time, I still do not trust. It is really not until we break above 1.1350 that I would look at this as a market that I would want to buy. I think it is probably just as likely, if not more, that we reach 1.10.

Ready to trade our Forex EUR/USD forecast? We've shortlisted the best European brokers in the industry for you.

MENAFN11112026000131011023ID1111948665