EUR/USD made a slight recovery on Friday, but the overall week closed in the red, continuing a two-week decline. Market sentiment remains influenced by hopes of a Fed rate cut, with key EU inflation data and the next Fed rate call on the horizon.
Forecasting the Coming Week: All eyes on the Fed’s decision and NFP
Next week, investors will focus on the pan-EU Harmonized Index of Consumer Prices (HICP) inflation figures, which could impact the ECB’s rate decision. The US Federal Reserve will also announce its latest rate call, with Nonfarm Payrolls data due on Friday, affecting odds of a September rate adjustment.
Despite stable US PCE inflation and consumer sentiment data, market sentiment leans towards a potential rate cut in September. The CME’s FedWatch Tool shows a high likelihood of a 25-basis-point cut in September, with some market participants even anticipating a 50 basis points reduction.
Euro Price This Week: Currency Strength Comparison
The Euro showed mixed performance against major currencies this week, with notable gains against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.24% | 0.36% | -2.29% | 0.87% | 2.11% | 2.20% | -0.44% | |
The table shows percentage changes of Euro against major currencies. Green indicates gains, red signals losses.
EUR/USD Technical Outlook: Bearish Trend Continues
EUR/USD remains in a descending channel on daily candlesticks, with the 200-day EMA acting as a support level. Despite short-term gains, the pair faces resistance near 1.0950, with downside pressure building up.
To summarize, the market sentiment is driven by Fed rate cut expectations, upcoming key data releases, and technical bearish outlook for EUR/USD. Investors should closely monitor inflation figures, Fed decisions, and NFP data for potential trading opportunities and risk management strategies.