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by The Euro traded near $1.102, with the market absorbing critical economic indicators and predictions about future monetary policies. Germany’s inflation dipped unexpectedly to 1.8% in September, marking the lowest rate since February 2021.
The 4-hour chart below demonstrates the EUR/USD price.
EURUSD Fundamental Analysis – 3-October-2024
Similarly, Italy reported a decrease in inflation to 0.8%. Recent figures from France and Spain also showed a significant drop in inflation, exceeding forecasts.
This trend has led to speculations that the overall Eurozone inflation rate might align with the European Central Bank’s (ECB) target of 2% in the upcoming report.
- Also read: USD/MXN Analysis – 2-October-2024
ECB President Lagarde told the European Parliament that the bank is optimistic about bringing inflation down to 2% by October, which will influence its next policy decision.
Market participants now see a 75% chance of the ECB reducing its interest rate in October. Meanwhile, despite a general decline in the strength of the US dollar, the Euro managed a 1.3% gain throughout September, influenced by expectations that the Federal Reserve might implement looser policies quicker than its global counterparts.
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