Skip to content EURUSD Fundamental Analysis – 11-August-2024
The Euro maintained its position at $1.092 (EUR/USD), following a surge to seven-month peaks of $1.096. This stability comes as traders continually reassess monetary policies and the broader economic landscape.
US Economic Data Sparks Concern
Recent weak economic indicators from the United States have ignited worries about a significant slowdown or looming recession in the world’s largest economy.
These concerns have led many to speculate that the Federal Reserve might need to implement more aggressive interest rate cuts to counteract the downturn.
- Also read: NZDUSD Fundamental Analysis – 8-August-2024
European Traders Adjust ECB Rate Expectations
Across the Atlantic, European traders have also modified their expectations regarding the European Central Bank’s (ECB) rate adjustments. There’s now an anticipation of a total reduction of 90 basis points this year, with a notable 50 basis points cut possibly occurring during the September meeting.
This shift reflects growing apprehension about the economic health of the Eurozone.
Germany’s Factory Orders Offer a Silver Lining
On a brighter note, Germany’s factory orders surprisingly climbed by 3.9% in July. This unexpected rise provides a hopeful sign for the recovery of the country’s struggling manufacturing sector, suggesting that there might be light at the end of the tunnel.
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