EUR/USD strengthened slightly after posting losses in the previous session, trading around 1.1650 during the Asian session on Monday (August 11th). The pair was supported by a strengthening euro (EUR), driven by prevailing expectations that the European Central Bank (ECB) will end its easing cycle in September.
Furthermore, the euro was supported by improving market sentiment due to the possible end to the Ukraine-Russia war. News of a possible Trump-Putin meeting next week has some hoping for a deal that could end hostilities in Ukraine.
The EUR/USD pair also strengthened as the US dollar (USD) weakened following weak US economic data, prompting traders to price in the possibility of further interest rate cuts this year. The market currently prices an 89% chance of a Fed rate cut at its September meeting. Traders are also pricing in a possible 58 basis point rate cut by the end of this year.
Fed Governor Michelle Bowman stated on Saturday that three interest rate cuts are likely appropriate this year. Bowman added that the apparent weakness in the labor market outweighs the risk of higher inflation in the future.
Traders will likely be watching US consumer inflation figures due on Tuesday, followed by the release of preliminary UK Q2 GDP data and the US Producer Price Index (PPI) on Thursday. These key data are expected to provide significant momentum for spot prices and guide the next phase of the directional move. (alg)
Source: FXstreet
The US dollar weakened at the start of the week after tensions between the United States and the European Union escalated over the Greenland issue. Markets assessed that the political conflict, which ...
EUR/USD loses ground for the sixth consecutive day on Wednesday, trading below 1.1730 after peaking above 1.1800 last week. The pair struggles amid a moderate US Dollar (USD) rebound following the rel...
The EUR/USD pair moved steadily around 1.1750 during Wednesday's Asian session. Its movement appeared to be holding up after a sharp drop the previous day from its highest level since September 24th. ...
The euro rebounded above $1.16, reaching its strongest level since mid-November, as investors adopted a cautious stance ahead of key Eurozone and US economic data that could influence interest rate ex...
The EUR/USD pair traded flat on Thursday, trading around 1.1596, as market liquidity thinned during the US Thanksgiving holiday. Despite the limited movement, pressure on the US dollar remained as exp...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...