The EUR/USD pair bounced back strongly from a weekly low of 1.0670 in Monday’s European session as the demand for risky assets increased. This was fueled by speculations that the Federal Reserve (Fed) might cut interest rates in its September meeting and possibly twice more before the end of the year.
The US economic outlook seems to be more robust compared to other major economies, which contributed to the strengthening of the US Dollar (USD). Despite correcting from a seven-week high, the USD still shows signs of near-term strength. The US Dollar Index (DXY) also retreated from its recent high.
In contrast, the Euro performed well against its counterparts despite the weak preliminary Eurozone PMI data for June. The Eurozone economy showed a slowdown, with both Manufacturing and Services PMIs coming in below expectations. This has raised hopes of potential rate cuts by the European Central Bank (ECB) in the future.
Investors are closely monitoring the political uncertainty in France ahead of the legislative elections scheduled for June 30. This uncertainty could impact the performance of the Euro in the coming days.
Overall, the financial markets remain volatile, and investors are advised to exercise caution and conduct thorough research before making any investment decisions. The information provided in this article is for informational purposes only and should not be considered as financial advice. Trading in the open markets carries risks, including the possibility of losing a portion or all of your investment. The author of this article does not have any personal financial interests related to the assets mentioned and does not provide personalized investment recommendations.