EUR/USD Stabilizes in Mid-1.16s Range Amid German Economic Strength
The EUR/USD exchange rate has stabilized in the mid-to-upper 1.16s range, supported by robust German economic data. The final Q2 GDP figures showed trade-driven improvements, while the IFO business sentiment index held steady.
These positive surprises have been factored into market expectations, limiting room for further gains. With a slight premium to its estimated fair value of 1.1622, the euro's upside is capped.
The upcoming European Central Bank meeting on September 10 has nearly 24 basis points of interest rate hikes priced in. The ECB's decision is unlikely to provide a fresh catalyst for the euro, as expectations are already high.
Technical analysis suggests that the current rally may stall at resistance around 1.17. If this level is broken, support levels at 1.1650 and 1.1600 will come into play. The 200-day moving average at 1.1632 serves as a crucial anchor.