The EUR/USD pair surged by 0.4% on Tuesday, surpassing the 1.1100 mark for the first time since December, reaching a new high for 2024. This uptrend has continued for three consecutive trading days, showing a potential 1% increase since Monday’s opening rates.
On Thursday, the Pan-European Purchasing Managers Index (PMI) activity survey results are anticipated, with the EU Manufacturing and Services PMIs for August expected to remain stable at 45.8 and 51.9, respectively.
Upcoming releases include the US Purchasing Manager Index (PMI) business activity survey on Thursday, along with the commencement of the annual Jackson Hole Symposium. On Wednesday, the Federal Reserve’s latest Meeting Minutes will be disclosed, but Thursday’s events are likely to drive market movements.
The US S&P Global Manufacturing PMI for August is forecasted to remain at 49.6, while the Services PMI could decrease from 55.0 to 54.0. The Jackson Hole Symposium’s start will attract significant investor interest, with Fed Chairman Jerome Powell’s appearance on Friday setting the market sentiment for the following week.
EUR/USD Price Forecast
The EUR/USD pair has reached a new high above 1.3050 in 2024, driven by a general short-selling of the US Dollar rather than specific Euro strength. With a positive performance in six out of the last seven trading days, the pair is firmly in bullish territory above the 200-day Exponential Moving Average (EMA) at 1.0835.
Despite the recent uptrend, long-term consolidation patterns on technical charts suggest a potential reversal back below 1.1000 if significant buying momentum falters.
EUR/USD Daily Chart
Euro FAQs
The Euro serves as the currency for 20 European Union countries within the Eurozone, being the second most traded currency globally after the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover exceeding $2.2 trillion. The EUR/USD pair is the most heavily traded currency pair worldwide, followed by EUR/JPY, EUR/GBP, and EUR/AUD.
The European Central Bank (ECB) in Frankfurt, Germany, controls the monetary policy for the Eurozone, with a primary focus on maintaining price stability through interest rate adjustments. Economic indicators like GDP, PMIs, and inflation data significantly impact the Euro’s value, along with trade balance figures.
Analysis:
The EUR/USD pair has shown a strong uptrend, driven by market sentiment favoring riskier assets and pressuring the US Dollar. Investors are closely monitoring upcoming data releases and events like the Jackson Hole Symposium for further insights into future market movements.
For individuals, this trend could impact their investment decisions, especially those involving foreign exchange or international markets. Understanding the factors influencing the EUR/USD pair can help individuals make informed choices about their finances and investment strategies.