EURUSD Analysis 2-July-2024

EUR/USD—In early July, the Euro stood at around $1.07. Traders were considering France’s economic and monetary policy outlook and political situation. The far-right National Rally party won the first round of the snap parliamentary election but with a smaller share than expected and without a majority.

This result relieved investors, as it suggested centrist parties might stay in power.

EURUSD Analysis 2-June-2024

Euro Area Inflation Slows to 2.5%

In June, the inflation rate fell in Germany, France, and Spain but slightly increased in Italy to 0.9%. Flash estimates for the Euro Area are predicted to slow down to 2.5%. Despite this, ECB President Lagarde mentioned at the ECB Forum that there isn’t enough evidence yet that inflation threats are over.

Therefore, policymakers are unlikely to cut interest rates soon. However, markets still expect one or two more cuts this year.