EUR/USD saw a slight uptick in the late American session on Wednesday following the Federal Reserve’s monetary policy announcement. However, the pair faced renewed selling pressure on Thursday, dropping to its lowest level since early July below 1.0800 as the US Dollar gained strength.
US Economic Calendar Highlights Weekly Jobless Claims and ISM Manufacturing PMI Data
The US Dollar’s recent strength comes after the Fed’s decision to keep the policy rate unchanged at 5.25%-5.5% in July, with a potential rate cut on the table for the September meeting. Fed Chairman Jerome Powell’s comments about considering a rate cut at the recent meeting led to a temporary weakening of the USD, but the impact was short-lived.
Looking ahead, market focus will be on the US Department of Labor’s release of weekly Jobless Claims data and the ISM Manufacturing PMI for July. A positive outcome in these reports could further strengthen the USD and potentially weigh on EUR/USD.
EUR/USD Technical Analysis
EUR/USD is currently testing key support levels, with the Fibonacci 61.8% retracement at 1.0780 acting as immediate support. On the upside, the 1.0800-1.0820 area presents strong resistance levels formed by the 100-day, 50-day, and 200-day Simple Moving Averages. A break above this region could signal a recovery towards 1.0860.
Understanding Euro FAQs and How They Impact Your Finances
The Euro is the currency for 20 European Union countries in the Eurozone and is the second most traded currency in the world. Factors such as ECB interest rate decisions, inflation data, economic indicators, and trade balance can influence the value of the Euro against other currencies like the US Dollar. Monitoring these factors can help individuals make informed decisions about their finances and investments.