The EUR/USD pair surged to a fresh seven-month high on Wednesday before retracing back towards the 1.1000 level. This movement came after the EU GDP growth data met market expectations and US CPI inflation showed signs of cooling down.
Key Market Events:
- EU GDP growth in line with forecasts
- US CPI inflation lower than expected
- Upcoming US Retail Sales figures on Thursday
Forex Market Outlook:
Looking ahead, traders are eyeing the upcoming US Retail Sales data for July, which is expected to show a rebound of 0.3%. Additionally, the University of Michigan’s Consumer Sentiment Index for August is forecasted to improve to 66.9.
Despite lower-than-expected inflation figures in the US, investors are closely monitoring economic data for clues on future Fed actions. The market is now pricing in a lower probability of a double-rate cut by the Federal Reserve in September.
EUR/USD Price Forecast:
The EUR/USD pair extended its bullish momentum on Wednesday, reaching a seven-month high near 1.1050. However, technical indicators suggest a potential pullback as the pair has moved far from the 200-day EMA support level.
EUR/USD Daily Chart:
Analysis:
The Euro is the second most traded currency in the world, with EUR/USD being the most popular currency pair. The European Central Bank plays a crucial role in managing the Eurozone’s monetary policy and interest rates. Economic indicators and data releases, such as inflation rates and trade balance, can significantly impact the value of the Euro.
For traders and investors, keeping an eye on key economic events and central bank decisions can help in making informed trading decisions in the volatile forex market. Stay tuned for updates on market trends and potential trading opportunities.