On Monday, EUR/USD experienced a half-percent rally as investors flooded the market with buy orders, propelling the Fiber above 1.1050 and aiming for the 1.1100 mark. Concerns about a potential US recession were briefly alleviated by more positive data, leading investors to focus on potential rate cuts by the Federal Reserve (Fed).
Forex Today: All Eyes on Fedspeak Ahead of Jackson Hole
As the week progresses, all eyes are on upcoming PMI data releases from the EU and the US, along with the start of the Jackson Hole Economic Symposium. These events are expected to begin on Thursday and could impact market movements significantly.
In the EU, Purchasing Managers Index (PMI) figures are anticipated to show improvement in August. Meanwhile, US PMI numbers are predicted to soften, potentially affecting the market sentiment in the coming days.
The Jackson Hole Economic Symposium, starting on Thursday, will serve as a platform for Fed policymakers to address the possibility of a rate cut in September. Recent market bets suggest a single rate cut is likely, with potential follow-up cuts later in the year.
EUR/USD Price Forecast
EUR/USD reached a new high for the year on Monday, surpassing 1.1086 as investors embraced a risk-on approach. The Euro’s upward momentum against the Greenback remains strong, with significant gains recorded since the beginning of August.
After bouncing off the 200-day Exponential Moving Average (EMA) near 1.0800, EUR/USD has seen a nearly 3% increase, signaling a bullish trend in the near term.
EUR/USD Daily Chart
For more information on the Euro and its impact on the global economy, refer to the FAQs below:
- What is the Euro and how does it affect the global economy?
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