Forex Analysis: 08 June 2021 - Vaccinations in Eurozone Strengthen Euro

Today's forex daily analysis for June 08, 2021, highlights the movement of EURUSD. The euro strengthened against the US dollar in market trading on Monday. The strengthening of the Euro against the US Dollar occurred due to the implementation of Covid-19 vaccination which has made very significant progress. Vaccination carried out by health authorities for the European region has made market participants confident that the economy will soon rise in the European region. Today's market movement in the Asian session, it is predicted that the EURUSD will weaken for the Euro currency compared to the US Dollar. The EURUSD could move higher but limited to the Euro compared to the US Dollar. This is based on the weakening of the US Dollar which is triggered by a decrease in the yield of bonds with a tenor of 10 years. However, as said at the beginning the strengthening of the Euro against the US Dollar will be limited, as a result of which European policymakers are predicted to not be too quick to take action to reduce the amount of their bond purchases. This decision was taken at their meeting this week. The focus of market participants is currently on German economic data such as German Industrial Production which will be released at 13:00 WIB and ZEW Economic Sentiment which will be released at 16:00 WIB. In addition, there is also Final Employment Change (EUR) & Revised GDP (EUR) q/q data which will be released at 16:00 WIB. The U.S. dollar began to strengthen against several other major currencies, as seen in Tuesday's market trading in the Asian session, although market participants are still looking at other safe-haven assets such as gold. The attitude of these market participants arises because they are still waiting for US inflation data which will be released on Thursday, June 10, 2021 at 19:30 WIB. However, market participants expect the inflation rate to remain high and could weaken the US Dollar, as a result of yesterday's NFP data release was lower than predicted. This has lowered expectations that the Central Bank will reduce asset purchases. The NFP data on Friday last week, which showed that the data released 559,000 was about 90,000 lower than analysts' predictions. This data illustrates that US bond yields are now at their lowest. Many market participants expect the Fed to immediately express its policy plan, especially regarding the plan to reduce bond purchases by the end of this year at the latest, and the asset purchase reduction activity will only begin to be implemented at the beginning of next year.

Forex Daily Analysis Predictions

Today's FOREX prediction on the EURUSD pair is expected to weaken/fall and the recommended OP (Open Position) is SELL at the level of 1.21700. With a Target Profit (TP) of 10 - 20 points and a Stop loss (SL) of 5 - 10 points. This the daily analysis of forex on June 8, 2021 which discusses the implementation of Covid-19 vaccination in Europe against the strengthening of the Euro. Keep prioritizing Money Management and Risk Management in your trading. Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia Youtube account which is full of a lot of information, and follow our Instagram account to get information about various interesting webinars that you can participate in.