Our free forex signals service today looks at the EUR/USD and we have the entry, stop and take profits levels for you.
The EUR/USD pair gains momentum on Thursday as the risk flows improve weighing on the US dollar (safe-haven asset). The pair has gained back the 1.1850 area after briefly slipping lower on the day.
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ECB’s emergency monetary support is back on the table following the recovery of the Eurozone economy and an increase in inflation.
On Wednesday, German Bundesbank chief Jens Weidmann discussed reducing this stimulus after inflation in the Euro area jumped to 3% earlier this week.
“We need to track risks to forecast prices. From my point of view, growth risks prevail,” said the head of the Bundesbank.
The recent ECB meeting contained the most explicit acknowledgement of excessive inflationary risks since the pandemic outbreak 19 months ago, despite Weidmann and his falcon colleagues Robert Holzmann and Klaas Noth more often being in the minority in the Governing Council.
In addition to cautiously anticipating the August release of the US employment report, investors are also waiting to see the Federal Reserve policy after that.
ADP’s nonfarm employment changes disappointed at 374,000 despite median forecasts predicting a 750,000 increase. Later Thursday, the weekly initial claims data will also be closely watched as a preview of Friday’s report.
The FOMC’s meeting in September may count on August’s NFP report as the market participants are expecting a timeline announcement of tapering. However, if the labor market doesn’t show signs of progress, the Fed may not be in a position to provide a tapering schedule.
EUR/USD free forex signals
Instrument: EUR/USD
Order Type: BUY STOP
Entry price: 1.1863
Stop Loss: 1.1792
TP1: 1.1984
Our Risk Setting: 1%
Risk / Reward Ratio: 1:1.7
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Saqib Iqbal
