EUR/USD holds position around 1.0800 as softer US data escalate odds of Fed rate cuts

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EURUSD News

Majors,Macroeconomics,Eurozone

EUR/USD continues its winning streak, trading around 1.0790 during the Asian session on Thursday.

EUR/USD gains ground as US Dollar struggles due to escalated speculation of Fed rate cuts in 2024. The US ISM Services PMI dropped to 48.8 in June, marking its steepest decline since April 2020. The Euro may experience volatility as the second round of the French election approaches this Sunday. This upside is attributed to a decline in the US Dollar due to the escalated speculations of the Federal Reserve reducing interest rates in 2024.

EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY , EUR/GBP and EUR/AUD . What is the ECB and how does it impact the Euro? The European Central Bank in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth.

 

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EUR/USD IG Client Sentiment: Our data shows traders are now net-short EUR/USD for the first time since Jun 13, 2024 when EUR/USD traded near 1.07.Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EUR/USD-bullish contrarian trading bias.
Source: DailyFX - 🏆 305. / 63 Read more »

EUR/USD IG Client Sentiment: Our data shows traders are now net-long EUR/USD for the first time since May 30, 2024 13:00 GMT when EUR/USD traded near 1.08.Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EUR/USD-bearish contrarian trading bias.
Source: DailyFX - 🏆 305. / 63 Read more »