At the start of the Tokyo market this week, buying of the euro came first. The dollar kept falling because people expect the Federal Reserve to cut interest rates and there are worries about its independence. The euro went up to 1.1736, but it could not reach last week’s high of 1.1742 after Chairman Powell’s speech, and then it fell back to 1.1697.
Because of political uncertainty in France, it is also hard for the euro to get strong buying support.
Today, during European time, the euro area August HICP (consumer price index) will be announced. It is expected to fall from 2.3% last month to 2.2%. The market reaction may be limited, but if the result is lower than expected, the chance of a rate cut may increase, which could bring risk for the euro to fall.
EUR/USD expected range: 1.1670 – 1.1740 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.