EUR/USD Tied to Oil Prices as US Data Takes Backseat
The EUR/USD pair has recovered slightly after two days of consolidation following a large drop due to a hawkish Fed rate hike last week. However, its movement is still being influenced by oil prices, which have eased further this week. The pair's near-term forecast remains closely tied to energy prices, and renewed weakness could occur if crude oil spikes again.
US data has taken a back seat this week, with little on the calendar expected to move markets. Instead, attention will turn to Donald Trump's meetings with Gulf state representatives in New York alongside the UN General Assembly. The Iran conflict remains a concern, but US Secretary Scott Bessent has stated that the duration of the conflict is uncertain and behind-the-scenes talks have been held with China regarding Tehran.
The eurozone PMIs are due out on Wednesday, which could attract some attention if they show significant signs of stagflation amid the energy spike. However, the direction of oil prices remains the primary concern for the EUR/USD forecast.