EUR/USD is hovering near the lower end of its weekly range, struggling to gain momentum amid market uncertainty. The upcoming Federal Reserve meeting and key economic data releases are expected to drive market direction.
Key Points:
- The Fed is anticipated to maintain its current policy settings post-July meeting.
- EU inflation data and US ADP Employment Change figures will be closely watched.
Euro Price Performance This Week:
Euro’s performance against major currencies this week shows weakness against the Japanese Yen. The table below illustrates the percentage changes:
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.37% | 0.26% | -1.29% | 0.04% | 0.65% | -0.58% | -0.23% | |
| EUR | -0.37% | -0.15% | -1.67% | -0.31% | 0.32% | -0.96% | -0.57% |
Eurostat will release the Harmonized Index of Consumer Price (HICP) data, a key inflation indicator for the ECB, later in the day. Markets expect core HICP to rise by 2.8% year-on-year in July.
On the US front, the ADP Employment Change data is scheduled for release. A 150,000 increase in private sector employment is forecasted for July, aligning with June’s figures. However, market participants may remain cautious ahead of the Fed’s policy update.
The Fed is likely to maintain its policy stance post-meeting, but market expectations for future rate cuts could impact the USD and EUR/USD pair. The market sentiment indicates limited downside for the USD unless there’s a dovish tone from Fed Chairman Powell.
EUR/USD Technical Analysis:
The RSI indicator on the 4-hour chart is below 50, indicating weak buying interest. Key support levels include 1.0810-1.0790 and resistance at 1.0840 and 1.0860.
Fed FAQs:
Learn more about the Federal Reserve’s monetary policy tools, policy meetings, and quantitative easing in our FAQs section.
Analysis Breakdown:
With the Fed meeting and economic data releases ahead, EUR/USD is in a critical phase. The outcome of these events can impact currency movements, especially in the context of market expectations for future rate cuts. Traders should monitor key support and resistance levels for potential trading opportunities.