As a result, during the European trading on Thursday, the EUR/USD currency pair was able to continue its rebound, pushing back above the 1.1250 level. The duo returned after a rough run of defeats. They extended their previous losses as markets await more significant US macroeconomic print outs and indications from the US Federal Reserve. The overall market sentiment has definitely turned, pushing the industry into a rebound. At the same time, a weakening US Dollar is giving the euro a helping hand in its rebound.
The EUR/USD was on a corrective retreat before rallying. This decline coincided with a rally in the US Dollar, creating a headwind for the pair. A confluence of factors has recently moved the tides in favor of the euro. Traders have had their eyes on a major U.S. Court of International Trade ruling today. It exposed how far former President Trump had outstepped his authority. Given the decision’s enormous ramifications for the US economy — and, therefore, on the USD’s performance — this was a high-stakes ruling.
This week market participants are looking ahead to key mid-tier US data and comments from Federal Reserve officials. They are interested in how these factors might affect the direction of currency appreciation or depreciation going forward. Analysts have their eyes trained on the expected numbers. They look for these figures to continue boosting the EUR/USD pair, as showing ongoing strength or retracement.
Moreover, a tentative turn in risk sentiment among investors has helped the EUR/USD rebound. All market participants are watching the calendar closely with these coming US data releases and Fedspeak. Considering the current dark clouds hanging over the US economy, they appear far more amenable to backing the euro.
The move back above 1.1250 clearly indicates that traders are in buy mode on the wide-ranging external factors smashing into market sentiment right now. Even the dollar’s recent strength is evaporating. This change in tune has allowed the euro to regain some of the territory it lost in previous days’ trading. Otherwise, observers point out that currency values often shift drastically due to general economic trends and investor mood. That is what makes the current recovery so special.
As the European session develops, traders are on edge. They’re looking forward to key US data and Fed speeches that may move the EUR/USD currency pair. Our attention will be on how all of this stacks up against what the market is currently expecting. What will happen at the July meeting? What will it signal about future US monetary policy direction?