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The vast majority of retail client accounts lose money when trading CFDs.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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EURUSD Dips at the 1.07 Resistance Level

EURUSD has dipped at the 1.07 resistance level and could see a dollar recovery. 

The market now awaits FOMC minutes from the recent FED meeting, which will be released ahead of the Asian session. 

EURUSD - Weekly Chart

EURUSD - Weekly Chart

The first support level for the EURUSD exchange rate is at the 1.04 level. That marks the 50-moving average with further support at the 1.02 price level. 

ISM manufacturing released on Wednesday came close to expectations with a slight underperformance for the US manufacturing sector. The Institute for Supply Management (ISM) said its manufacturing PMI dropped to 48.4 last month from 49.0 in November, slowing for a second straight month.

That was also the weakest reading since May 2020, which saw the index just below 48.7, which the ISM says is consistent with a recession in the broader economy. However, the labour market is still strong and holding up consumer spending. That makes it less likely that a recession is coming. A PMI reading below 50 indicates a manufacturing contraction, accounting for 11.3% of the US economy. Economists polled by Reuters had predicted the index dropping to 48.5. 

The Federal Reserve is on the fastest interest rate-hiking cycle since the 1980s as it seeks to tackle inflation-hurting consumer demand. Wednesday's focus will be the release of minutes from the latest FOMC meeting. Investors will be looking through those notes for any hints of policy changes. However, the FED has clearly planned to keep rates high rather than a reverse course.

That should keep the dollar strong despite a European Central Bank that aims to play catch-up on rates. Inflation data showed a better-than-expected fall in French inflation, which also helped the greenback.

Last Updated: 05/01/2023

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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