The Euro (EUR) fell further amid softer CPI data in the Eurozone, Germany and Spain, notes Chris Turner, FX Strategist at ING.
EUR/USD to trade lower
“This raises expectations that the ECB could cut rates again at its next meeting on September 12. This week, the focus is on manufacturing PMI (today), services PMI, PPI (Wednesday), retail sales (Thursday) and GDP (Friday). ECB statements this week are largely muted with Nagel tomorrow, Villeroy on Thursday.”
“It is perhaps worth mentioning that ECB statements of late have not been overtly dovish and officials seemed to be aiming for a more gradual pace when it comes to policy easing. That said, markets have priced in a 25bp cut at this meeting and a roughly 37bp cut for the rest of the year (another 1.5bp cut). Another set of disappointing data could move the needle for markets to price in a more dovish ECB and for the EUR to trade lower.”
“EUR was last trading at 1.1070 levels. Daily momentum turned slightly bearish while RSI fell. Support at 1.1040 (21 DMA), 1.10, 1.0930 (61.8% Fibonacci retracement of 2024 high to low). Resistance at 1.12 (recent high) and 1.1280 (2023 high).”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
