Skip to content EURUSD Fundamental Analysis – 8-August-2024
The Euro remained stable at $1.092 (EUR/USD) after peaking at a seven-month high of $1.00. Traders are closely examining the economic and monetary outlook. The release of weak economic data from the United States has intensified fears of a significant slowdown or potential recession in the world’s largest economy.
This development has led many to believe that the Federal Reserve may need to implement more aggressive interest rate cuts. Across the Atlantic, European traders have also adjusted their expectations, now predicting a further reduction of 90 basis points in ECB rates this year.
A 50 basis point cut is particularly anticipated during the September meeting. In addition to these monetary policy changes, Germany’s economic outlook was positive.
- Also read: USDCHF Fundamental Analysis – 6-August-2024
Factory orders unexpectedly rose by 3.9% in July, boosting optimism for the struggling manufacturing sector. This increase offers a glimmer of hope that the industry might be on the path to recovery despite the broader economic challenges.
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