EUR/USD saw a bump higher on Monday, reaching 1.1000 before retracing back to 1.0950, failing to hit a new high for the year. The market is anticipating rate cuts from the Federal Reserve, with hopes for a double-cut in September.
European Retail Sales Impact on Fiber
European Retail Sales data is due on Tuesday, adding to the thin economic calendar for the week. Pan-EU Retail Sales are expected to show a slight decrease for the year ended in June compared to the previous period.
Market sentiment, as reflected in the CME’s FedWatch Tool, indicates an 85% chance of a 50 basis points rate cut in September, following mixed US data releases. The economic calendar for the week is light, giving investors time to assess their positions.
US PMI data for July showed a slight dip in the Composite PMI but an increase in the Services PMI, indicating some inflation pressures at the business level.
EUR/USD Technical Analysis
Despite breaking out of a descending channel, EUR/USD lacks strong bullish momentum and may retreat to the 200-day EMA at 1.0801. However, a pattern of higher lows suggests potential for a bullish cycle.
Euro FAQs
The Euro is the currency of 20 EU countries in the Eurozone, with EUR/USD being the most traded currency pair globally. The ECB in Frankfurt manages monetary policy and sets interest rates to maintain price stability.
Eurozone inflation data, economic indicators, and trade balance all influence the Euro’s value and can impact trading decisions.
Overall, EUR/USD is influenced by global economic factors, central bank policies, and market sentiment. Understanding these factors can help investors make informed decisions in the forex market.