The situation in Turkey has not been resolved. The markets are currently focused on the area and contagion through emerging market currencies as well as European bank exposure are weighing heavily.
With a downward trending EURUSD, we were able to find a short setup during the early part of the U.S. session risking 15 pips for a potential 50 pips to our daily target at 1.1344.
The market has priced in a 90% probability that the U.S. will raise the interest rate in September. Trouble in Europe and a very strong U.S. economy equates to a lower EURUSD. Will we test the 110.00 figure? It looks like that is a possibly, but President Trump cannot be happy as European goods become less expensive. In the meantime, the USD remains bid.
Lots of news this week for the U.K. with traders watching closely to determine if the recent rate increase is backed by more solid growth.
Good luck with your trading!
