EUR/USD faced resistance at 1.1200 on Monday as traders adjusted their risk flows, leading to a pullback in the pair. The economic calendar for the week remains relatively quiet, with investors eagerly awaiting key inflation data later in the week.
Key Data Releases to Watch Out For:
- EU Harmonized Index of Consumer Prices (HICP) inflation on Friday
- Q2 US Gross Domestic Product (GDP) figures on Thursday
- July US core Personal Consumption Expenditure – Price Index (PCE) inflation on Friday
Monday saw a surprising rally in US Durable Goods Orders for July, which boosted market sentiment. However, concerns remain about the overall health of the economy, as some indicators point to potential weaknesses.
EUR/USD Price Forecast
Despite recent gains, EUR/USD is facing technical resistance and could see a pullback towards the 50-day EMA. The pair has been on a strong upward trend, but caution is advised as a reversal could be on the horizon.
Euro FAQs
The Euro is a major currency in the global market, with the Eurozone comprising 20 European Union countries. The European Central Bank (ECB) plays a crucial role in setting monetary policy and maintaining price stability, which directly impacts the value of the Euro.
Overall, the current market conditions suggest a cautious approach, as upcoming data releases could influence the direction of EUR/USD. Keeping an eye on key economic indicators and central bank policies is essential for making informed investment decisions.