EURUSD comes back ahead of the FED Chairman’s testimony

Mohammed Abdelkhalik
June 22, 2021

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EURUSD  Outlook – 22nd June 2021

EURUSD returned to record its losses on Tuesday morning in the European market, resuming its decline after rising yesterday within the rebound operations from its lowest level in two months.

The US dollar is the best safe and alternative investment at the moment, and the US dollar supported the results of the Federal Reserve meeting, in which it indicated the possibility of its tightening earlier than expected, and TradeNation investors are awaiting the testimony of Federal Reserve Chairman “Jerome Powell” that will add more clues about the future of Monetary policy in the United States.

EURUSD daily chart - 22nd June 2021

The EURUSD pair traded at $1.1882, down by 0.3% from the opening level of today’s session at $1.1917, and the single currency closed yesterday’s trading up by 0.5% within the rebounds from the two-month low at $1.1847.

EURUSD awaiting for the President of the European Central Bank talking

Yesterday, European Central Bank President Christine Lagarde testified before the European Parliament that the European Union is witnessing a growing economic recovery, and despite that, the Coronavirus remains a threat to economic growth, and Lagarde also stressed the possibility of an economic recovery faster than before. expected, and that raising interest rates early may pose a risk based on economic growth and inflation rates.

The euro’s decline last week came as a result of the Federal Reserve’s decision to reflect on investors, as the bank decided to leave interest rates unchanged in the range of 0% and 0.25%, and the bank also pledged to maintain the $120 billion monthly asset purchase program as it is.

The most notable change in the statement was that the Fed indicated that it will start raising interest rates in 2023 before the expected 2024, as such, investors believe that the bank will soon begin to reduce its asset purchases, as the bank indicated that it was comfortable letting go Policy is the same as in previous data, saying the ongoing recovery was temporary.


Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.