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Forex and Cryptocurrency Forecast - Action Forex

Forex and Cryptocurrency Forecast - Action Forex
Recall that Monday, 27 May was a holiday in the US. However, on Tuesday, dollar bulls took control, and the DXY Index started to rise, bolstered by a significant increase in the US Consumer Confidence Index (from 97.5 to 102.0 against a forecast of 96.0). Consequently, EUR/USD moved southward.

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EUR/USD: Awaiting a Turbulent Week

The EUR/USD pair is expected to face a turbulent week ahead, with the US dollar gaining strength due to an increase in the US Consumer Confidence Index. Expectations of a rate cut by the European Central Bank (ECB) have also put pressure on the euro. However, the US Federal Reserve is taking a more stringent position, aiming for steady inflation towards the 2.0% target. The US Bureau of Labour Statistics' report showed a decrease in the Consumer Price Index and retail sales, leading to talks of a possible Fed rate cut. The US Bureau of Economic Analysis also reported a slowdown in US economic growth in Q1.

As for the GBP/USD pair, the British currency is facing uncertain times, with a decline in retail sales and snap parliamentary elections scheduled for July. Analysts' forecasts for the pair are divided, with some expecting a downward movement and others predicting a northward movement.

On the other hand, the USD/JPY pair had a relatively calm week, with the yen trading within a narrow range. Japanese financial authorities have not confirmed intensive yen purchases to support its exchange rate, and the future of the pair remains uncertain.

In the world of cryptocurrencies, Ethereum is in the spotlight, with the US Securities and Exchange Commission approving applications for spot exchange-traded funds based on Ethereum. Analysts have varying forecasts for Ethereum's price, with some predicting a rise to $5,000 per coin, while others express concerns about potential drawdowns and regulatory issues.

As the global financial markets brace for an eventful and volatile week, all eyes will be on key economic data releases and central bank meetings. The future movements of these currency pairs and cryptocurrencies remain uncertain, with various factors influencing their trajectories.

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