The Euro (EUR) starts the week with gains against the US Dollar (USD) as traders anticipate crucial inflation data from both the Eurozone and the United States. Economic growth figures in the US could also impact the Greenback’s performance. The EUR/USD currently trades at 1.0850, representing a 0.30% increase. Market sentiment appears cautious.
European Central Bank (ECB) officials, including Stournaras, emphasize the need for continued monetary tightening and gradual rate adjustments to combat inflation. ECB President Christine Lagarde reiterated the bank’s commitment to reaching its 2% inflation target. Meanwhile, US housing data (New Home Sales) showed a modest increase but missed expectations.
Investor sentiment toward the Euro may be weakening, according to a Bloomberg article citing CFTC data that suggests reduced Euro long positions. Key economic releases this week include flash PMIs, German Retail Sales, US Durable Goods Orders, and highly anticipated inflation and GDP data. Technical analysis suggests the EUR/USD may remain range-bound near the 200-day moving average.