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EURUSD Price Predictions For 2022

Thu Jan 20 2022 18:52
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Since the gold standard ended in 1971, the U.S dollar (USD) has continued to operate as the reserve currency for the world. Being a reserve currency naturally means that it’s among the most traded global currencies. 

The EUR/USD forecast today live serves as the most traded currency pairing on the Forex (F.X.). According to various estimates, the F.X. is the biggest over-the-counter market dealing with speculative global activities.

On its part, Forex serves as the largest and most liquid financial marketIt currently boasts of a net worth of about $2 quadrillion. Its net worth is up to three times larger than the current worldwide gross domestic product of around $90 trillion.

Eur/USD Forecast Today Buy or Sell?

The figures mentioned above indicate how vital the Forex market is to the current global economy. It’s also a representation of the seamless nature of the EURUSD Tradingview transactions happening between:
  • Banks
  • Brokers
  • Traders
  • Other financial corporations
These are transactions that occur daily and account for close to half a dozen trillion dollars. When combined, they help in forming an average-weighted forex trading volume. 

On the other hand, the present size of the F.X. market is around 50 times bigger than the New York Stock Exchange (NYSE). The EUR/USD forecast 2022 pairing occupies a special place in all the leading F.X. pairings in the money world. 

It shares this position with other pairings such as:
  • USD/CHF
  • USD/JPY
  • USD/CAD
  • GBP/USD
  • NZD/USD
  • AUD/USD
When combined, these 7 pairings account for approximately 85 per cent of all daily global transactions related to the Forex markets. The USD is the most traded currency out of the pairings used to form the Euro/USD pair.

Eur/USD News Today with Regards to Daily Global Transactions

Trades involving the USD constitute nearly 90 per cent of all worldwide transactions. On its part, the Euro is the second most traded currency. Its active daily trades (buys and sells) are well over 30 per cent.

These trades make up double the stats of its two closest followers: the pound sterling (GBP) and Japanese yen (JPY). To further point out the importance of the euro forecast next 6 months, you should note that 50 per cent of F.X. transactions occur in the U.K. and the U.S. 

It’s why there’s a need for investors to closely follow the happenings on the F.X. market, even for those who aren’t fond of the EUR/USD pair. Its sheer size means that it directly impacts all the other pairings trading in the market.

Will Euro Fall in Coming Days?

A thorough analysis of the EURUSD forecast Tradingview requires time and a great deal of effort. For one to make a good prediction, they would need to look at:
  • Ongoing and historical price action
  • Fundamentals factors, including interest rate changes
  • Prevailing market data
Access to a detailed EUR/USD forecast today live prediction can help eliminate the guesswork out of a trader’s experience.

A Look into the Latest Performance of the USD

The USD closely tracks what’s happening in the U.S economy. Many consider it a safe-haven currency. Investors view the Eur/USD forecast today buy or sell pairing as the best performers when investing in risky sectors.

Analysts believe that the USD had a strong 2021 because of the ongoing COVID-19 pandemic. Its recovery has benefitted it immensely! It’s a trend that picked up in June of last year after the Federal Open Market Committee (FOMC)meeting. 

The meeting led to the release of a revised dot plot.

Results of the Revised Dot Plot

The revision of this dot plot showed that the Fed governors expect two rate increases to occur in the coming year. Their occurrence is suggestive of a more robust and diverse U.S economy. 

On the same breadth, the EUR/USD forecast 2022 indicates that the USD will begin to gain momentum. The increased momentum will be in line with its strong economic performance. 

In its conclusion, the FOMC announced that the central bank would start to accelerate a drawdown of the intervention spurred by the pandemic. What this means is that the Fed governors are eyeing an interest hike in the coming weeks. 

As expected, all major markets were jolted by this announcement. The reactions were as follows:
  • The USD attained its highest levels in June when traded against the Euro
  • The USD gained against the British pound
  • The USD gained its highest levels when trading against the Turkish lira (TRY)
Below is a table showing how the USD faired against the currencies mentioned above:

What Factors are Likely to Drive the Value of the USD?

As the Eur/USD news today shows, the USD, is the global reserve currency, naturally benefits when its home economy is solid. And as earlier mentioned, the USD is a save haven currency, where investors flock whenever its sentiment begins to rise. 

 USD appears to have a positive outlook over the coming months. The outlook will remain positive even if the global economy doesn’t experience any shocks, e.g., the Fed’s hawkish nature on the economy.

Citibank analysts have maintained a bullish outlook for the USD in 2022 against all major currencies, including the EUR and the GBP.

Euro Forecast Next 6 Months

As mentioned above, it’s estimated that the USD will continue to gain ground over the EUR in the coming months. According to a report prepared by ING, the EUR/USD exchange rate will fall to around 1.10 by the close of 2022. 

Please note that analysts typically pay more attention to the EUR/USD cross rate rather than the USD/EUR rate. The cross rate refers to the number of USD that an investor needs to possess for them to purchase a single EUR. 

Like those at Citibank, the analysts at ING believe that the Fed has spurred the growth recorded by USD. But then again, the European Central Bank (ECB) customary path of monetary policy tightening has gotten delayed several times. 

The result has been additional pressure on the EUR vs. USD trades.

Forecast of the USD to EUR

According to analysts, stagflation is most likely to affect USD performance against the Euro.

As investors and analysts continue to seek answers to the question, “will euro fall in coming days?” the following is a EURUSD Tradingview graph for the next 5 years:
Now that you have a basic understanding of all the essential factors, it’s now time to move to a more detailed prediction of the EUR/USD pair.

Eur/USD Forecast 2022 12 Months Predictions

Below is a month by month EURUSD forecast Tradingview:
  • January: EUR/USD price will reach 1.2671 due to bullish dynamics
  • February: A bearish trend will likely begin, causing the prices of this F.X. pair to settle at 1.2621.
  • March: Prices may hit 1.2401 due to bearish dynamics
  • April: Average EUR/USD prices will hit 1.2355 due to a bearish outlook
  • May: A bullish trend will begin helping to take their prices to 1.2649
  • June: Bearish dynamics will cause the price to settle at 1.2527
  • July: The pair will maintain an average trading price of 1.2529 due to bullish trends
  • August: Bullish dynamics are expected to be at play, causing their prices to settle at 1.2709
  • September: The average price will be 1.3044 due to a bullish trend
  • October: Bearish dynamics will cause the prices to settle at 1.2978
  • November: Bullish dynamics will come back to play, taking the prices to 1.3298
  • December: An ongoing bullish outlook will enable the prices to settle at 1.3424
The detailed EUR/USD forecast today buy or sell forecast above is based on AI-based predictions. They should help you understand what to expect in the coming months. 

While other pairings may undergo some turmoil, the EUR/USD pairing will remain the most liquid in the F.X. market.

Make sure to bookmark Xosignals.com to get access to the latest signal trading news, stock market news, and thoroughly analyzed EUR/USD forecast 2022 news.
TAGS:
Forex,
Forex trading,
CFD
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