
Even if the Fed tightens monetary policy so aggressively that the US economy enters a recession, the US dollar may still find support. According to the Dollar Smile Theory, the greenback can strengthen anyway. Let’s examine the situation and develop a trading plan for the EUR/USD. Major Takeaways A yield curve inversion is approaching. The market expects the Fed to raise rates to 4.75%. Oil prices are holding steady despite rising supply. Short trades can be opened with targets of 1.13 and 1.12. Weekly Fundamental Forecast for Dollar The derivatives market is pricing in a federal funds rate increase of… Read full author’s opinion and review in blog of #LiteFinance
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