EURUSD Fundamental Analysis – 6-August-2024

The Euro has climbed above $1.094 (EUR/USD), reaching its highest point in seven months. This increase is mainly due to the weaker dollar, which fell after disappointing US labor data.

These poor labor figures have caused fears of a possible recession and raised hopes for aggressive interest rate cuts by the Federal Reserve. Concerns about the US economy have led to expectations of three Fed rate cuts this year instead of the previously expected two.

Additionally, traders are predicting at least two interest rate cuts by the European Central Bank (ECB) this year, with the next one likely in September. ECB’s Stournaras has warned that the Eurozone might face inflation issues due to ongoing economic challenges.

• Also Read: USDMXN Analysis – 6-August-2024

In July, annual inflation unexpectedly rose to 2.6%, but services inflation decreased for the first time in three months. Early estimates indicate that the Eurozone economy performed better than expected, growing by 0.3% in the second quarter.

This growth was driven by strong performances in France, Italy, and Spain, although Germany experienced an unexpected decline.

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Ethan O. Miller

Ethan O. Miller is a seasoned Forex analyst. His insightful articles offer a unique perspective on currency trends, aiding both novice and experienced traders in navigating the Forex market.

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