For the past year, our articles continued to stick to the bearish narrative concerning the stock and cryptocurrency markets, mainly based on the FED pursuing higher interest rates to beat high inflation while strengthening the U.S. dollar. With the upcoming FOMC meeting (and another potential rate hike) between 1st and 2nd November 2022, we expect this trend to continue.
Indeed, with the ECB lacking behind the FED with the number of rate hikes, we think this represents a significant obstacle to a stronger euro. Historically, the U.S. dollar is exceptionally strong, and it will likely stay that way for a while with more rate hikes on the table. Therefore, we will pay close attention to the closest meeting of central bankers in the USA and reassess our thoughts after it.
Illustration 1.01
The monthly chart of EURUSD displays a 40.54% decline from the all-time high until the recent low. The current value of EURUSD is on par with that in the early 2000s.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Indeed, with the ECB lacking behind the FED with the number of rate hikes, we think this represents a significant obstacle to a stronger euro. Historically, the U.S. dollar is exceptionally strong, and it will likely stay that way for a while with more rate hikes on the table. Therefore, we will pay close attention to the closest meeting of central bankers in the USA and reassess our thoughts after it.
Illustration 1.01
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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