- EUR/USD rebounds swiftly from 1.0670 as the appeal for risk-perceived assets improves.
- The US economic outlook appears to be stronger than its peers.
- Weak preliminary Eurozone PMI boosts hopes of ECB’s subsequent rate cuts.
The EUR/USD pair recovers strongly from a weekly low of 1.0670 in Monday’s European session. The major currency pair bounces back as the appeal for risk-sensitive assets improves amid growing speculation that the Federal Reserve (Fed) will start reducing interest rates in the September meeting and will deliver two rate cuts this year.
S&P 500 futures have posted some gains in the London session. 10-Year US Treasury yields remain sluggish near 4.25%. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, corrects from the seven-week high of 105.90.
On Friday, the US Dollar (USD) performed strongly after the preliminary S&P Global PMI report for June showed that overall economic activity surprisingly expanded. Flash United States (US) Services business activity expanded to 26-month high at 55.1. The Manufacturing PMI rose to three-month high at 51.7.
Though the US Dollar corrects from seven-month high, its near-term appeal has improved. Where all major economies failed to meeting PMI estimates, the US economy surprisingly expanded at a faster pace than their prior release.
Meanwhile, the Euro delivers an upbeat performance against its peers in Monday’s session as investors digest political uncertainty in France ahead of thefirst legislative elections round scheduled for June 30.
The Euro recovered despite the preliminary HCOB PMI report for June pointing to a slowdown in the Eurozone economy. Both Manufacturing and Services PMIs were weaker than expected, which has boosted expectations of subsequent rate cuts by the European Central Bank (ECB).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds gains near 0.6600 as RBA Governor Bullock speaks
AUD/USD clings to gains near 0.6600 early Tuesday. The Aussie fails to find any inspiration, as the RBA holds the key interest rate at 4.35%. Strong China's Caixin Services PMI data supports the Aussie amid a steady US Dollar and a tepid risk tone. RBA Governor Bullock's presser gets underway.
USD/JPY: Rebound remains capped below 152.50 amid cautious mood
USD/JPY consolidates the bounce below 152.50 in Asian trading on Tuesday, tracking the US Dollar price action. The pair's upside remains capped by strong Japanese PMI data and a cautious market mood. Traders remain wary as Americans head to polls this Tuesday.
Gold traders appear non-committal on the US election day
Gold price is miring in five-day lows near $2,730 in Asian trading on Tuesday, lacking a clear direction. Traders remain wary and refrain from placing fresh bets on Gold price on the US presidential election day.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption.
US presidential election outcome: What could it mean for the US Dollar? Premium
The US Dollar has regained lost momentum against its six major rivals at the beginning of the final quarter of 2024, as tensions mount ahead of the highly anticipated United States Presidential election due on November 5.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.