Following on Friday’s American session, the EUR/USD currency pair remained bullish above the 1.1700 level. Weaken-than-expected U.S. consumer sentiment data added to this upward momentum. Futures traders are positioning themselves for the big Federal Reserve policy meeting set to take place next Wednesday. As the title alludes to, this meeting has the potential to greatly shift market dynamics.
Later in the trading session, EUR/USD kept moving in a narrow range above the figure, 1.1700. The University of Michigan’s Consumer Sentiment Index reflected increasing negativity with perceptions of the economy dropping. This economic contraction limited the US Dollar’s progress. As noted, this provided enough support for the EUR/USD currency pair to cling to its gains as the week comes to an end.
According to analysts, all eyes were on inflation expectations starting to separate between the US and the rest of the world. Here in the US, tariff costs are slowly but surely spreading into all corners of the economy. The transmissions to final consumer prices have been quite muted so far. By contrast, inflation in the US, UK and Europe was rising in August—though at a much slower rate.
The US Dollar’s recent strength seemed to lose its legs as traders digested the latest sentiment data. This weakness fueled a favorable backdrop for EUR/USD, adding to the pressure keeping it above the 1.1700 level. Moreover, acute global inflationary pressures continue to be observed, with tariff pass-through effects still playing through the economy.
Gold prices have continued to signal investors’ risk attitudes, with the precious metal managing to cling onto limited daily gains just shy of $1,950. Market participants are especially sensitive to movements in the GBP/USD and EUR/USD currency pairs. They understand that these movements are typically driven in no small part by the performance of the US Dollar.
Markets traders are bracing for the next Fed meeting. It is very important for them to select brokers with tight spreads, very low latency execution and superior trading platform that develops especially for the EUR/USD trading activity. A list of reliable brokers for trading this currency pair in 2025 emphasizes the importance of selecting optimal trading conditions.