EUR/USD failed to break above 1.0900 on Monday, signaling a potential end to its recent bullish trend. Technical factors are weighing heavily on buyers, with the upcoming ECB rate decision expected to limit Euro bids later in the week.
The Federal Reserve’s Chairman, Jerome Powell, noted progress on inflation, while market expectations point to a rate cut in September. The upcoming US Retail Sales data release is anticipated to show a continued slowdown in economic activity.
Euro traders are awaiting the ECB’s rate call on Thursday, with a potential rate cut in September and another one in December. The ECB prefers to make interest rate decisions at forecast meetings, rather than in July, October, or January.
Despite reaching a 16-week high, EUR/USD failed to break above 1.0900 and is now consolidating near the top end of a descending channel. The technical outlook suggests a possible reversal from the recent bullish trend.
Overall, market attention is focused on data releases and Fedspeak, with the Eurozone’s economic indicators and the ECB’s monetary policy decisions impacting the Euro’s performance. Trading in the Eurozone is influenced by factors such as inflation data, economic indicators, and trade balance.