Euro’s High Inflation Rates
Euro’s High Inflation Rates

The forex trading sector has been around for several decades and it supports all major and minor fiat currencies. With the inception of internet technology, the forex trading sector was brought onto the internet technology. However, at that time, every fiat currency had its own reputation, value, and demand in the market.

Therefore, there wasn’t much of a competition that major fiat currencies had to face. From the beginning of the online forex trading sector until 2020, the major fiat currencies were USD, EUR, GBP, CND, JPY, CNY, and many more.

However, in the year 2020, as the pandemic hit the entire world, it was the economies of the major countries that were impacted the most. Therefore, the pandemic proved to be a resetting point for the entire forex industry, and every fiat currency had the chance to begin from the starting point.

Current Market Situation of EUR

As the pandemic hit, it caused the global economy to experience the worst plunge. Not even the United States and its future planning were able to save it from the great plunge. Surprisingly, it is the United States that took the highest amount of damage to its economy. Still, the country is trying to recover from the losses and so far, the situation doesn’t seem to be getting much better.

Europe is also facing the same problem as the United States as the EUR is also facing the same inflation rate as the USD. Europe also seems to be facing the same problems as the rest of the world. These issues are related to the high costs of living that include fuel prices, energy prices, food item prices, and all other kinds of products. Even the house prices, car prices, and transportation costs have surged due to high inflation rates in Europe.

Current Sentiments of Forex Investors in EUR

Although the US dollar is also facing inflation, Euro’s inflation rate has been worse against it. The technical analysis of the EUR/USD pair shows that compared to yesterday’s trading, Euro’s price has dipped by 0.24% against the USD.

Euro closed yesterday trading at 1.13265 versus the US dollar but it is currently trading at 1.13016. This means that the value of EUR has dipped versus the USD.

Even the current sentiments of the forex investors are in the bearish zone. The performance scale for EUR versus the USD shows that the investors may prefer selling it against the USD. This is because of the constant price dip the EUR has been observing against the largest global reserve currency.

Although the price of EUR managed to recover a bit in December of 2021, yet its overall trend has been moving into the bearish zone.

Price Analysis for EUR Based on Current Sentiments

Due to the bearish sentiments of the investors in EUR, it is being expected that its price will plunge even more in the upcoming days. The forex news and analysis surrounding EUR suggests that its price may plunge to 1.11 against the USD in the upcoming days.

If this happens, it won’t be the only plunge that EUR would face against the USD. Even the EUR analysis run and shared by the forex brokers, shows that EUR price may continue falling.

In the upcoming days, the forex investors may remain bearish about EUR and may continue selling EUR. This may result in another price drop, bringing Euro’s price all the way down to 1.09 versus the USD.

If Euro’s price falls to the 1.09 figure, it may trigger a high selling rally against EUR. This may result in another major plunge for EUR against the USD. As a result of the plunge, the price of EUR against the USD may come all the way down to 1.06.

So far, the market condition seems to be supporting such predictions and forecasts about EUR versus the USD. Therefore, investors need to be very vigilant when making investments in fiat currency.