Forex
Euro Surges as Fed Rate Hike Bets Fade Amid Weaker US Data
The EUR/USD pair gained strength on Monday as the US Dollar (USD) weakened against the Euro (EUR). The European Central Bank (ECB) President Christine Lagarde's speech on Wednesday will be a key factor in determining the currency pair's future movement. According to the CME FedWatch tool, market participants now price a 33.1% chance of a rate hike next month, down from 44% last week.
The US economic data released on Friday was weaker than expected, with Retail Sales falling by 0.6% MoM in July compared to a rise of 0.2% in June. This figure came in below the market consensus of a 0.1% growth. The EUR/USD pair maintained its constructive outlook above the 100-day SMA, and traders are watching for any signs of a potential correction.