EUR/USD Soars as Trump-Harris Debate Weakens US Dollar
EUR/USD is on the rise as the US Dollar weakens following the Trump-Harris televised debate. Vice President Kamala Harris emerged as the winner, leading to a decline in USD due to reduced chances of Trump implementing Dollar-friendly policies.
Analysts predict further strengthening of EUR/USD as investors speculate on a potential jumbo Fed rate cut. The US Federal Reserve may cut interest rates by 50 basis points at its next meeting, impacting the currency pair positively.
US Inflation Data Impacting Market Sentiment
The release of US Consumer Price Index (CPI) data for August will influence Fed rate-cut expectations. The current low inflation levels may not have a significant impact, but higher-than-expected inflation could strengthen the USD.
ECB Meeting to Determine Eurozone Economic Outlook
Growth concerns in the Eurozone, particularly in Germany’s manufacturing sector, could limit EUR/USD upside. The ECB is expected to announce a rate cut to stimulate growth, potentially impacting the currency pair’s performance.
Technical Analysis: EUR/USD Downtrend Continues
EUR/USD has been declining and is likely to post lower lows. A break below key support levels could lead to further downside, while a recovery is still possible based on technical indicators.
EUR/USD 4-hour Chart
Overall, the Trump-Harris debate outcome and upcoming economic events will have a significant impact on EUR/USD movement, making it crucial for investors to stay informed and monitor market developments closely.