EUR/USD Surges to Eight-Week High Amid Dollar Weakness

The EUR/USD currency pair has reached an eight-week high at 1.1588, driven by dollar weakness following disappointing US economic data.

A report from the University of Michigan showed a sharp decline in consumer sentiment, with the preliminary consumer sentiment index falling to 51.0 in August, down from 54.2 in July and below the forecasted 55.2.

The Atlanta Fed's GDPNow model also lowered its Q3 GDP growth forecast to 4.3% from 5.8%, while the New York Fed's Nowcast estimates growth at approximately 2.1%, widening the tension between continued economic activity and deteriorating consumer expectations.

The baseline for EUR/USD remains moderately positive, but further direction will depend on new signals regarding the US economy and the Federal Reserve's policy stance.