EURUSD Bounces Amid Shift in Rate Expectations
The recent shift in rate expectations has led to a significant change in the market's perspective on risk assets. The Jackson Hole meeting saw a flip in the rate picture, with September hike odds increasing from 35% to 57%. This sudden change has left traders questioning the direction of the euro.
According to ConfluxMethod4, who uses the Conflux Method for analysis, the week is expected to open risk-off with a gap. The following day will bring the release of the Non-Farm Payrolls (NFP) data, which could be lively due to an annual revision of minus 79k.
On the EURUSD pair, spot traders are currently trading within the 1.1527-1.1540 range for a bounce. ConfluxMethod4 recommends working with this range and expects a reversal in risk assets in the near term.