A reminder that long EURUSD is a risk-on trade - in spite of all the (IMO overblown) de-dollarization chatter, USD is still the safe haven when markets get nervous and sell off. Unless US equity markets bounce convincingly today, they are set to have a very bearish weekly close that will have people seriously wondering about AI bubble concerns. Additionally, next week is a shortened, low-liquidity holiday week in US markets, and there are still intractable differences on a Russia-Ukraine peace deal. Putin cannot afford to lose, and unless Ukraine caves in to unacceptable demands, apparently Putin loses, which leaves escalation. A close near the lows for US equity markets today would be bearish for EURUSD IMO.
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