Euro Forecast: US Sentiment Data Could Push EUR / USD Lower
The Euro may drop compared to the US dollar if data on consumer confidence cool the Fed rates.The positive characteristic of the market pushed the US stock markets to a record historical maximum.EUR / USD broke through 1.1022 and is now at a low since November 14.
The euro/dollar fall will increase if consumer data in the US show positive results. Improving the mood of the global economy appears due to the fact that US stock markets reach historic highs amid optimism about the prospects for trade negotiations between the US and China. The question is how long this buoyancy can keep stocks and consumer optimism afloat.
The US economy is driven by costs, therefore, a confident consumer provides the necessary behavioral basis for supporting a consumption-based economy. Fed rates will increase and put pressure on the US dollar if these sentiments do not meet market expectations. Given the current situation, consumer confidence may be more optimistic and lead to a stronger dollar.