Yesterday during European trading hours, the GDP (economic growth data) for the Eurozone from April to June was announced at 1.4%, which was better than the expected 1.2%. However, the market did not react much.
Later, during New York trading hours, the U.S. GDP was announced and was stronger than expected. Because of this, the U.S. dollar became stronger overall, and the euro fell from around 1.1550 to 1.1450.
In the FOMC meeting, the U.S. central bank showed a careful attitude toward cutting interest rates. This also pushed the euro down to around 1.14.
Earlier, many traders were buying euros instead of dollars, but that has now stopped. Also, while the European Central Bank (ECB) is seen as stopping rate cuts, the U.S. central bank (Fed) is expected to continue lowering rates in the future. This view is pushing more people to sell euros.
However, with the U.S. jobs report coming tomorrow, there is a chance the dollar may fall if the report is weak. Because of this, some think the euro may be close to its bottom.
Expected EUR/USD range: 1.1350 – 1.1450
Note: The above information does not guarantee profit. Please make your own decisions when trading.