At the start of last week, the euro fell to 1.1590 after news that the U.S. would extend high tariffs on China for 90 days, which led to dollar buying.
But later, the U.S. July CPI was weaker than expected, and the euro rebounded. After that, comments from Bessent and President Trump, pushing the Federal Reserve to cut rates, caused the dollar to drop further. This pushed the euro up to 1.1730. After some profit-taking, the euro stayed strong and closed firm.
This week, the market is watching Federal Reserve Chairman Powell’s speech at Jackson Hole. Because of the weaker job market, Powell is expected to support a rate cut, which could help the euro rise more.
However, Germany’s PMI and GDP will also be released this week. If those are weaker than expected, the euro may fall. Still, since the market is mainly focused on the U.S. dollar, the effect may be limited.
This week’s forecast range for EUR/USD: 1.1600 – 1.770 USD
Note: This is not a guarantee of profit. Please make your own decisions when trading.