EUR/USD Struggles to Gain Momentum as USD Maintains Strength
- Despite the European Central Bank (ECB) increasing their benchmark interest rate by 25 basis points to 4%, the Euro still plummeted, signaling the end of the current rate hike cycle.
- The US Dollar (USD) continued to rise with US retail sales figures for August surpassing expectations at 0.6%, and the economy showing no signs of an impending recession.
- Next week, the market will be focused on EU inflation figures, US FOMC, and a host of other data publications, including preliminary EU manufacturing and services Purchasing Manager Indexes (PMI), and US jobless claims.
The EUR/USD is set to end the week on a low note, hovering near the week’s low of 1.0650 as the USD gains strength, sending the broad dollar index upward. Although the ECB raised their benchmark interest rate by 25 basis points to 4%, the Euro plummeted, indicating the end of the current rate hike cycle. The US economy looks to be in good shape with the US retail sales figures for August exceeding expectations at 0.6%. Next week, market watchers will be focused on the EU inflation figures, US FOMC, and a host of other data publications, including preliminary EU manufacturing and services Purchasing Manager Indexes (PMI), and US jobless claims.