EURUSD volatility abound as more Americans buy houses whilst Europe lags behind

Gary Thomson, Chief Operating Officer FXOpen UK

EURUSD volatility has been on the rise, reflecting contrasting trends between the United States and Europe, particularly in the housing market.

fXOPEN750

One of the key indicators of economic confidence and accessibility is the rate of new home sales. In the United States, the anticipation is high for the January 2024 new home sales figures, with expectations hovering around 680,000 compared to 664,000 in the same period last year. Despite recent interest rate hikes burdening mortgage holders and borrowers, the resilience of the US economy has remained evident, contributing to a strong US Dollar against other major currencies.

Examining the EURUSD pair reveals significant volatility. At 9.10 am UK time today, the pair was trading at 1.08347, marking a slight uptick for the Euro from its position on February 20. However, the Euro’s performance remains subdued compared to its levels at the end of last year.

The US Dollar’s recent rally against the Euro may be attributed to the decision by US central banking authorities to maintain interest rates at current levels. While anticipated rate cuts did not materialise, the assurance of stable interest rates has likely bolstered borrower confidence in the US housing market.

Conversely, Europe faces a more challenging economic landscape. Reports from the Bundesbank suggest a potential downturn in the German economy, raising concerns of a technical recession. This follows a lacklustre performance in 2023, where Germany’s economy struggled compared to other major economies.

Overall, the divergence in economic prospects between the US and Europe is evident. While the US economy appears resilient, with optimism prevailing despite previous challenges, Europe grapples with slower inflation reduction and the looming threat of recession in key economies like Germany.

While the Euro has made some recent gains against the US Dollar, today’s new home sales figures in the US, coupled with concerns surrounding the Eurozone, serve as a reminder of the ongoing economic uncertainties on both sides of the Atlantic.

FXOpen offers spreads from 0.0 pips and commissions from $1.50 per lot. Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms!

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Disclaimer:  The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff.

Read this next

blockdag

BlockDAG Offering a Fresh Take on Meme Coin Development Amid Solana’s Challenges and Floki Inu’s Price Fluctuations With 30,000x ROI

Dive into how BlockDAG’s innovative presale, low-code platforms, and potential 30,000x ROI, outperform Solana’s technical hurdles and Floki Inu’s market predictions.

blockdag

BlockDAG Excels With $2.2M In Miner Sales And Moonshot Teaser, Overshadowing Litecoin’s Rally And Dogwifhat’s Market Highs

Explore how BlockDAG’s $2 million Miner Sales & Moonshot Teaser eclipse the Litecoin price recovery and the Dogwifhat all-time high.

blockdag

BlockDAG Leads Top 6 Cryptocurrencies to Buy in 2024 with a Potential Price Surge to $10 Leaving Cosmos, BNB, and Ethereum Behind

Discover the top six cryptocurrencies in 2024, including BDAG’s remarkable growth potential, BNB’s durability, Cosmos’ connectivity, and ETH’s eco-friendly advances.

Retail FX

Weekly Roundup: Prop firm arbitrarily accounts, Interactive Brokers’ CFDs in Japan

FX, Fintech and cryptocurrency markets have been bustling with activity over the past week, as is often the case. Keep yourself informed and ahead of the curve with a curated selection of crucial stories and developments that are most relevant to those engaged in the markets.

blockdag

BlockDAG Redefines Crypto Mining as Presale Tops $18.5M, Outshining Ethereum ETF & Dogecoin Dynamics

The recent approval of the first Ethereum ETF in Hong Kong underscores a significant advancement in the cryptocurrency’s mainstream acceptance. While Ethereum continues to attract institutional attention, the Dogecoin price prediction suggests a possible resurgence, despite its current undervaluation from past highs.

Digital Assets

Bitcoin halving is done: ViaBTC mines historic block 840K

The Bitcoin network has confirmed its fourth-ever halving block, mined by the cryptocurrency pool ViaBTC, according to data from Blockchain.com. This significant event in the Bitcoin ecosystem reduced the mining reward by half, a deflationary measure occurring approximately every four years to control the issuance of new bitcoins and curb inflation.

Retail FX

True Forex Funds now offers Match-Trader and cTrader platforms

Proprietary trading firm True Forex Funds today announced the launch of Match-Trader, a multi-asset trading platform developed by California-based FX technology provider Match-Trade Technologies.

Retail FX

CySEC hits FXORO parent with €360,000 fine

The Cyprus Securities and Exchange Commission (CySEC) has fined MCA Intelifunds, trading as FXORO, a total of €360,000 for multiple violations of the Cypriot investment laws.  

Digital Assets

Binance’s CZ in good mood ahead of sentencing, says partner

Yi He, co-founder of cryptocurrency giant Binance, has shared a positive outlook on the legal situation of the exchange’s former CEO, Changpeng Zhao. Zhao is currently awaiting a sentencing hearing scheduled for April 30 in the United States.

<