EUR/USD Eyes Risk Sentiment and US Economic Data
After reaching multi-week lows slightly above the crucial 1.0700 level on Friday, EUR/USD shows signs of recovery, trading in the lower 1.0700s on Monday. This can be attributed to the overall lack of direction in global markets.
Due to the Memorial Day holiday in the US, trading conditions and volatility are expected to remain limited on Monday, resulting in a relatively quiet market.
So far, there has been no significant impact on the foreign exchange (FX) market following the resolution of the USD debt ceiling issue. However, European stock markets have opened with an optimistic tone.
Moreover, investors are hopeful that the agreement to raise the US debt ceiling will be approved by Congress. President Biden and House Speaker McCarthy reached an understanding over the weekend to avoid the first-ever government default.
No significant data releases are scheduled for Monday in both the US and the Eurozone.
Key Factors Affecting the Euro (EUR)
EUR/USD has encountered solid support around the 1.0700 level, preventing further declines.
Moving forward, the pair’s performance is likely to mirror the movements of the US Dollar, particularly in response to any divergence in the monetary policies of the Federal Reserve and the European Central Bank (ECB) regarding interest rate adjustments.
Looking ahead, the continued hawkish comments from the ECB suggest a potential increase in interest rates, despite a slight loss of momentum in the region’s economic fundamentals.
Please continue to read new articles here about merchandise assessed by Waytrade.