The EUR/USD pair is facing challenges as it struggles to attract buyers due to a combination of factors. Political uncertainty in Europe, along with disappointing Eurozone PMI data, is weighing on the Euro. At the same time, the Federal Reserve’s hawkish stance is pushing the USD to multi-week highs, adding further pressure.
The pair remains low for the third consecutive day, hovering around 1.0690-1.0685 during the Asian session. Concerns about the outcome of a snap election in France are impacting the Euro, as fears of a worsening fiscal situation loom. Additionally, the recent PMI data showing a slowdown in business activity in the Eurozone is contributing to the downward pressure on EUR/USD. The USD Index is also climbing to its highest level since May, supported by strong US business activity data.
Traders are keeping an eye on upcoming US data, particularly the PCE Price Index, to gauge the Fed’s rate-cut path. This will play a significant role in determining the near-term dynamics of the USD and could provide momentum for the EUR/USD pair. German IFO Business Climate data and speeches from FOMC members will also be important for short-term trading opportunities in the absence of major US economic releases.