Update on the US versus Euro Area unemployment rate.
US trending upwards, while the EU Area is quite stable.
US came in at 3.9%
While EU Area is hovering between 6.4% - 6.5%
This chart shows the bullish SMT Divergence happening across the US Treasury Bond yields.
According to the ICT methodologies this could indicate a potential continuation for the DXY Index higher.
In this chart you can see the interest rate differential for the FED versus the ECB.
I have outlined a possible scenario in rate cuts highlighting a bearish Euro/bullish US Dollar.
If the ECB will cut rates before the FED it will enlarge the differential, which is a bearish outlook for the Euro.
