Focus will shift to additional ECB easing very soon

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The removal of 2019 hikes is worth highlighting because it does not fully support the story we are being told from macro data meaning the bar is set high for any further hikes. History tells us it’s very unusual for the Fed to pause for a long time in hiking cycles before resuming meaning this is likely the end of hikes in the cycle. See tradingview for a more detailed review of the Fed.

Focus will soon shift back to additional easing from the ECB who are more dovish than Fed so any upside will remain capped in EURUSD. I remain confident in the 1.09 forecast for Q2.

We have PMIs tomorrow, inline or overshoots there will be enough to turn the ship south...otherwise we are set for more consolidation.

Good luck

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Draghi confirming today what we have been expecting... focus shifting towards further ECB easing
Beyond Technical AnalysisChart PatternsdollardraghiecbEUReuroEURUSDfedpowellTrend AnalysisUSD

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