EURUSD Analysis 12-August-2024

The Euro stabilized at $1.09 after soaring to seven-month highs of $1.092 as traders continued to assess the monetary and economic outlook. Weak economic data for the US raised concerns about a significant slowdown or a potential recession in the world’s largest economy, raising bets the Fed would need to cut interest rates more aggressively.

Traders in Europe also increased expectations for ECB rate cuts, now anticipating a further reduction of 90bps this year, with a 50bps cut likely at the September meeting. On the data front, factory orders in Germany unexpectedly rose 3.9% in July, providing a glimmer of hope for the struggling manufacturing sector’s recovery.

EURUSD Analysis 12-August-2024