On Monday, the EUR/USD currency pair was in an overall bullish bias. It felt a bit of bearish pressure just below the 1.1730 figure. Trade-weighted, the US Dollar has had a modest bounce back. Because of that, the currency pair has pulled back from its recent peaks. Changes in payroll figures and political changes in France are affecting the macroeconomic picture. These drivers remain central to shaping the market sentiment surrounding EUR/USD.
In particular, the newly released July payrolls numbers created a lot of panic and volatility in the underlying EUR/USD markets. Critics pointed out how these numbers have shifted public perception and discourse around what economic success looks like. As a result, they have eagerly attacked President Trump’s stewardship of the economy. The intensifying clash around various economic indicators further complicates any EUR/USD focused trading strategies.
French Prime Minister François Bayrou’s defeat in the confidence vote has moved the sentiment drastically against the euro. This major setback has spurred frustration among investors and the public. His decision comes amid speculation over spending abuses and allegations of illegal campaign financing by President Macron’s party, LREM. Furthermore, this turn casts a shadow of political uncertainty over France. These types of events can have an important cascading effect on investor confidence in the euro and its exchange rate against the dollar.
With EUR/USD turning tail to 1.1730, the half-hearted rebound in the Greenback was a factor. Falling US yields are adding further support to the euro’s strength. Further support is coming from the prospect of future rate cuts by the Federal Reserve. This dynamic is indicative of a larger trend, one where traders are overall still pretty optimistic on EUR/USD’s outlook despite mixed economic data.
“All eyes on NFP report as Fed rate cut bets intensify.”
Gold prices have similarly held a bullish posture, staying above $3,600. This trend has a direct link to the track EUR/USD pair. When one goes up, the other usually suffers from their connected existence in worldwide markets.
There are three important areas market analysts are watching that will drive the EUR/USD trade. This competitive landscape for FX brokers facilitating client trades on the EUR/USD currency pair is very healthy. Best brokers 2025 offer enticing bells and whistles that lure traders. These advantages feature competitive spreads, quick execution rates, and strong and robust trading platforms that suit the differentiated needs of traders.