The EUR/USD pair is trading cautiously above the 1.1000 level, consolidating gains following a recent rally. The US Dollar remains under pressure as market participants anticipate a more dovish stance from the Federal Reserve in the face of declining inflation.
The release of softer-than-expected US CPI data has reinforced expectations for a September rate cut, boosting investor sentiment towards riskier assets. However, uncertainty remains regarding the magnitude of the potential rate reduction.
Market Focus
Today’s focus will be on the release of US Retail Sales data, which will provide further insights into the strength of the US consumer. The data is expected to show a modest increase in spending, potentially supporting the overall positive market sentiment.
Technical Outlook
The EUR/USD pair has shown resilience above the 1.1000 level, indicating a potential continuation of the uptrend. However, profit-taking and consolidation are possible before the next leg higher.