EURUSD Pair May Rise Despite Bank Predictions of Bearish Trend

FXOpen

During the middle of 2023, the EURUSD pair witnessed a steady decline that lasted until October, reflecting a prolonged period of challenges for the euro against the US dollar. Since then, there has been a glimmer of hope in the market. Despite the recent correction, the market has hinted at a potential continuation of the uptrend over the past five days.

The EURUSD pair, which had slumbered at the high of 1.0890, experienced a rise to 1.10 by Tuesday midway through the London trading session. The pair hasn't moved dramatically since then. While some analysts cautiously labelled this movement as a 'rally,' it is evident that there has been a discernible shift in sentiment for the EURUSD pair.

HSBC's Bearish Prediction

Adding an interesting layer to the unfolding narrative, Tier 1 interbank FX dealer HSBC has released its predictions for the most traded currencies in 2024. The bank's outlook for the EURUSD pair is notably bearish, projecting a trading level of around 1.02 by the end of 2024. While such predictions are speculative and subject to change, they introduce an element of anticipation for traders and investors navigating the currency markets.

It's essential to note that HSBC's forecast raises echoes of the latter part of 2022 when the EURUSD pair experienced a significant decline, breaching parity and reaching 0.9535 at one point on September 29. Whether a similar scenario will unfold in 2024 remains uncertain, with the consensus around central bank monetary policy playing a pivotal role.

Market Response to Predictions

Curiously, despite the bearish prediction from HSBC, the EURUSD pair did not exhibit a substantial decline at the market opening this morning. This suggests that market participants are not reacting strongly to the speculative forecast, emphasising the unpredictable nature of currency markets.

As the EURUSD pair experiences a modest recovery, the currency markets remain relatively uncertain. The recent uptick, coupled with HSBC's bearish prediction, creates an environment of speculation. Traders and investors will be closely monitoring market dynamics, central bank policies, and global economic factors that could influence the trajectory of the EURUSD pair in the coming months.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

Indices

How AI is Becoming a Bearish Factor for the Nasdaq 100

In 2024, the Nasdaq 100 index (US Tech 100 mini on FXOpen) has risen by approximately 20%, with optimism around the integration of artificial intelligence (AI) acting as one of the bullish drivers.

However, yesterday's reports from Microsoft (MSFT) and

Shares

Microsoft (MSFT) Shares Decline Despite Strong Earnings Report

On 9 October, our analysis of Microsoft (MSFT) suggested that the stock price:

→ Was forming an ascending channel (shown in blue on the chart);
→ Could see a rebound from its lower boundary (indicated by an arrow).

Since then, the price

US Nonfarm Payroll Report: Market Insights
Trader’s Tools

US Nonfarm Payroll Report: Market Insights

Navigating the complex waves of the financial markets requires an astute understanding of various economic indicators. Among them, the nonfarm payroll report stands out as a pivotal monthly metric that can significantly sway financial markets. This article demystifies the intricacies

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.