Euro Weakens Sharply, Sterling and Swiss Franc Also Under Pressure
| Action Insight Weekly Report 11-24-24 |
| Euro Weakens Sharply, Sterling and Swiss Franc Also Under Pressure |
Euro stole the limelight last week with a steep selloff triggered by poor activity data. This downturn has intensified the pressing need for the ECB to ease monetary policy swiftly back to neutral levels. While Euro's decline was pronounced, Sterling and the Swiss Franc are not far behind, each facing their own set of challenges. Although these European majors are clearly bearish against most other major currencies, their relative outlook is less clear due to their intertwined relationship. Conversely, Canadian Dollar and Australian Dollar emerged as the strongest performers, partly supported by renewed risk-on sentiment in the US markets. This positive mood has bolstered commodity-linked currencies as investors seek higher-yielding assets. Dollar holds the position of the third strongest currency; however, its upward momentum is somewhat capped by risk-on sentiment and sluggishness in treasury yields. Nevertheless, the greenback could merely be consolidating against commodity currencies and Yen, with buyers ready to come in again any time.... |
EUR/USD Weekly Outlook EUR/USD's decline from 1.1213 continued last week and accelerated to as low as 1.0330. There is no sign of bottoming yet and initial bias stays on the downside this week. Sustained trading below 1.0404 key fibonacci level will carry larger bearish implication and target next level at 161.8% projection of 1.1213 to 1.0760 from 1.0936 at 1.0203. Nevertheless, strong rebound from current level, followed by break of 1.0609 resistance, will indicate short term bottoming. | |
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