The US economy dictates EUR/USD prospects. Therefore, the EUR/USD is unlikely to race higher as the American economy continues to outperform the eurozone, Kit Juckes, Chief Global FX Strategist at Société Générale, reports.
It is hard to see the euro staging much of a rally.“The US has been outperforming the eurozone since mid-2021, and that outperformance has been accompanied by a rising dollar. It shows no signs of abating.”
“We’ll see what this afternoon’s US ISM data throws out (the consensus looks for a fall from 53.8 to 52.4), but if the US economy continues to outperform (in both manufacturing and services ISMs, and in the payroll report at the end of the week), then it’s hard to see the euro staging much of a rally.”
“Easier to see it mostly glued into the lower half of September’s EUR/USD 0.95-1.02 range.”
GBP/USD holds steady at around 1.1200
GBP/USD continue to trade in positive territory near 1.1200 on Monday following the UK government’s reversal to scrapping higher income tax rate cuts. The renewed dollar strength ahead of the ISM PMI report, however, doesn’t allow the pair to gather bullish momentum.
GBP/USD News
EUR/USD retreats toward 0.9750 amid renewed dollar strength
EUR/USD has lost its bullish momentum and declined below 0.9800 during the European trading hours on Monday. The risk-averse market environment is helping the dollar gather strength against its rivals ahead of the ISM PMI data and weighing on the pair.
EUR/USD News
Gold clings to modest daily gains above $1,660
Gold has turned positive on the day above $1,660 after having edged lower in the early European session. The benchmark 10-year US Treasury bond yield is down nearly 3% on the day ahead of US data, helping XAU/USD keep its footing.
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