The Euro (EUR) exhibits strong performance against the US Dollar (USD) as expectations of a gradual interest rate cut by the European Central Bank (ECB) fuel optimism. Investors are closely watching the US inflation data for further insights on interest rates.
EUR/USD has surged to a seven-month high above 1.1000, with the Euro benefiting from the ECB’s cautious approach to rate cuts. The ECB’s policy-easing cycle, initiated in June, aims to bring inflation back to the bank’s target of 2% by 2025. Market sentiment suggests that the ECB may cut rates twice more this year, in September and December.
Recent data from Eurostat indicates that the Eurozone GDP expanded by 0.3% in the second quarter of this year, in line with expectations.
Daily Market Analysis: EUR/USD Capitalizes on Euro’s Strength
- EUR/USD holds above 1.1000, driven by USD weakness on Fed rate-cut speculations.
- Market expectations for Fed rate cuts strengthen following the US PPI report for July.
- US CPI data for July will provide further insights into inflation and interest rate decisions.
Euro Price Today:
The Euro has shown strength against major currencies today, with the highest gain against the New Zealand Dollar.
| EUR | USD | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| EUR | 0.25% | 0.38% | 0.45% | 0.23% | 0.28% | 1.29% | 0.00% | |
| USD | -0.25% | 0.13% | 0.21% | -0.01% | -0.02% | 1.06% | -0.24% | |
| GBP | -0.38% | -0.13% | 0.09% | -0.13% | -0.10% | 0.93% | -0.34% | |
| JPY | -0.45% | -0.21% | -0.09% | -0.20% | -0.19% | 0.83% | -0.39% | |
| CAD | -0.23% | 0.00% | 0.13% | 0.20% | 0.00% | 1.05% | -0.19% | |
| AUD | -0.28% | 0.02% | 0.10% | 0.19% | -0.01% | 1.00% | -0.25% | |
| NZD | -1.29% | -1.06% | -0.93% | -0.83% | -1.05% | -1.00% | -1.23% | |
| CHF | -0.01% | 0.24% | 0.34% | 0.39% | 0.19% | 0.25% | 1.23% |
Technical Analysis: EUR/USD Breaks Out of Channel
EUR/USD has reached a new high above 1.1000, breaking out of a channel formation. The 20-day EMA suggests a bullish outlook, while the RSI indicates upward momentum. Key resistance levels for the Euro include 1.1065 and 1.1100, while support lies at 1.0777 and 1.0700.