The Euro Rises Despite Concerns Over Eurozone Economic Growth
- EUR/USD reaches near 1.1200 as the Euro gains traction against major peers.
- ECB expected to cut interest rates, impacting Euro’s performance.
- US Dollar’s upcoming trigger: core PCE inflation data for August.
In European trading, EUR/USD continues its climb towards 1.1200, showcasing the Euro’s strength against other major currencies despite worries surrounding Eurozone economic growth. Recent data, including the Flash HCOB Composite Purchasing Managers Index (PMI), reveals a contraction in September to 48.9, the lowest level since January.
Eurozone Manufacturing Sector Challenges
The decline in business activity stems from a significant contraction in the manufacturing sector across major Eurozone economies. Notably, Germany’s HCOB Manufacturing PMI hit a low of 40.3, marking 27 consecutive months of contraction. Similarly, the French HCOB Composite PMI reverted to contraction after a brief expansion in August due to a one-off event.
Market Expectations for ECB Interest Rate Cuts
The Euro’s future performance hinges on market expectations regarding the European Central Bank (ECB) potentially cutting interest rates in the remaining policy meetings this year. Analysts anticipate at least one interest rate cut in the upcoming meetings.
Euro Price Today
The table below displays the percentage change of the Euro (EUR) against major currencies today, highlighting its strength against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|
Daily Market Movers: EUR/USD Strengthens on Positive Euro Sentiment
- EUR/USD nears yearly high of 1.1200 as the US Dollar weakens amidst China’s stimulus plans.
- Fed rate cut bets and US economic data influence the Dollar’s performance.
- Focus on US core PCE inflation data for August as a key market trigger.
- Analysis of US Durable Goods Orders also crucial for market sentiment.
Technical Analysis: EUR/USD Outlook
EUR/USD approaches key resistance at 1.1200, supported by strong buying interest near the 20-day EMA. The currency pair’s outlook remains positive as long as it holds above the Rising Channel pattern and psychological support at 1.1000.
The RSI indicates weakening momentum, suggesting a potential shift in direction. A breakout above 1.1200 could lead to further gains towards the July 2023 high, while key support levels lie at 1.1000 and 1.0950.