EUR/USD managed to keep a hold of 1.1050 on Tuesday, but action is tilted downside as US PMI figures stoked a bid into the Greenback, impacting market sentiment. With the upcoming US NFP labor numbers, investors are eagerly awaiting to gauge the depth of Fed rate cuts.
Forex Today: Economic Data Challenges US Soft Landing
European data remains limited this week, with all eyes on the US Nonfarm Payrolls (NFP) report. Pan-European Retail Sales are expected to show slight improvement in July, while European GDP figures are also on the radar for Friday.
The recent US ISM Purchasing Managers Index (PMI) figures fell short of expectations, adding to concerns of a looming recession. Investors are cautious as they await the NFP report on Friday, which will shape market expectations for the Fed rate decision.
EUR/USD Price Forecast and Technical Analysis
EUR/USD has faced a bearish pullback, testing near-term technical barriers. Despite trading above the 200-day Exponential Moving Average (EMA), the pair is encountering resistance as shorts target levels above the 50-day EMA.
EUR/USD Daily Chart
For more information on the Euro and its impact on the global economy, check out the FAQs below:
- The Euro is the currency for 20 European Union countries in the Eurozone, with EUR/USD being the most traded currency pair globally.
- The European Central Bank (ECB) in Frankfurt manages monetary policy for the Eurozone.
- Eurozone inflation data, economic indicators, and trade balance all influence the Euro’s value.
Stay tuned for updates on EUR/USD and how global economic trends can affect your investments.