EUR/USD saw a slight rise on Tuesday, fueled by a decrease in Greenback pressure. However, the pair remains below the key 1.1200 level as Euro bulls face challenges in pushing the price higher. The market session on Wednesday is expected to be quiet with limited economic events on the calendar.
Fed Chair Jerome Powell hinted at a potential rate-cutting cycle in September, boosting market sentiment. On Friday, EU and US inflation data will be closely watched, impacting the future direction of the pair.
Key Points for Wednesday’s Market
Wednesday’s session is anticipated to be subdued with minimal economic releases. Traders will keep an eye on speeches from Fed officials and the Eurogroup meeting. Mixed US housing price data from June failed to provide clear direction for investors.
Upcoming Events: Inflation Data in Focus
Friday will see the release of Eurozone inflation numbers for August and US Q2 GDP figures. The US PCE Price Index inflation reading for July will be crucial for market participants expecting rate cuts. A higher-than-expected print could impact investor risk appetite.
Forex Today: Lack of enthusiasm points to some consolidation
EUR/USD Price Forecast
EUR/USD is showing strong performance in August, up over 3.1% for the month. Despite recent gains, the pair faces resistance near the 1.1200 level. Technical indicators suggest a potential pullback towards the 50-day EMA at 1.0925.
EUR/USD Daily Chart
Euro FAQs
The Euro is the currency for the 20 European Union countries in the Eurozone. The European Central Bank (ECB) plays a key role in managing monetary policy and interest rates, which can impact the value of the Euro. Economic data releases and trade balance figures also influence the currency’s strength.