EUR/USD Buoyed by US Dollar Weakness, Eyes ECB Decision
EUR/USD extended gains above 0.10% early Tuesday, riding the wave of US Dollar weakness triggered by disappointing US economic data. The pair now trades near 1.0870 after hitting lows around 1.0840. Weaker-than-expected US S&P Global Services PMI and ISM Services PMI figures fueled a sharp drop in the US Dollar Index (DXY), which fell to an eight-day low of 103.58. While the DXY pared losses, it remains down 0.13%.
Positive Eurozone Services and Composite PMI data offered some support for the Euro, but gains remain muted ahead of Thursday's European Central Bank (ECB) rate decision. Despite mixed signals, the outlook for the Eurozone economy appears to be improving.
The market continues to price in a potential 99 basis point easing cycle by the Federal Reserve (Fed) by the end of 2024. EUR/USD maintains a bullish bias, hovering above all daily moving averages (DMAs). A sustained break above 1.0900 could trigger a rally towards the downslope resistance trendline near 1.0975/85, ahead of the 1.1000 mark. On the downside, bears retain control below the 50-DMA at 1.0864, eyeing a potential test of the 200-DMA at 1.0830. SEO-Friendly Keywords: EUR/USD, US Dollar weakness, economic data, PMI, ECB decision, Fed easing expectations, technical outlook. SEO-Optimized Meta Description: EUR/USD pushes higher on soft US data, ECB decision in focus. Bullseye 1.0900, bears target key DMAs.
The market continues to price in a potential 99 basis point easing cycle by the Federal Reserve (Fed) by the end of 2024. EUR/USD maintains a bullish bias, hovering above all daily moving averages (DMAs). A sustained break above 1.0900 could trigger a rally towards the downslope resistance trendline near 1.0975/85, ahead of the 1.1000 mark. On the downside, bears retain control below the 50-DMA at 1.0864, eyeing a potential test of the 200-DMA at 1.0830. SEO-Friendly Keywords: EUR/USD, US Dollar weakness, economic data, PMI, ECB decision, Fed easing expectations, technical outlook. SEO-Optimized Meta Description: EUR/USD pushes higher on soft US data, ECB decision in focus. Bullseye 1.0900, bears target key DMAs.