The EUR/USD pair shows signs of recovery on Friday, despite concerns of more interest rate cuts by the ECB. The recent slide in the USD, driven by a dovish Fed, has supported the Euro bulls. Investors are now looking to Fed Chair Jerome Powell’s upcoming speech for market direction.
Recent data from the US, including weak job growth and rising jobless claims, indicate a slowing economy, reinforcing expectations of a Fed rate cut in September. This has hampered the USD’s rebound and benefitted the EUR/USD pair. On the other hand, mixed Eurozone PMI prints and concerns over Germany’s contracting business activity may limit the Euro’s gains.
The ECB’s hints at potential rate cuts and worries over the Eurozone’s economic growth further complicate the currency pair’s outlook. However, Powell’s speech could provide clarity on the Fed’s future monetary policy, impacting the EUR/USD pair’s trajectory.
In conclusion, the EUR/USD pair’s movement is influenced by central bank policies, economic data, and geopolitical events. Traders should monitor Powell’s speech and upcoming ECB meetings for insights into future rate cuts and their impact on the currency pair’s performance.
Economic Indicator
Next release: Fri Aug 23, 2024 14:00
Frequency: Irregular
Consensus: –
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Source: Federal Reserve