Euro Trades in Data-Driven Range Against US Dollar Through Q3

According to ING analysts, the euro (EUR) is likely to trade in a data-driven range against the US dollar (USD) as the third quarter of 2024 progresses. This outlook suggests that the currency pair will be heavily influenced by incoming economic data from both the Eurozone and the United States.

The current macroeconomic landscape supports this forecast, with the Eurozone economy showing tentative signs of recovery but growth remaining fragile. In contrast, the US economy has demonstrated resilience, although the Federal Reserve's next policy moves remain uncertain.

ING notes that upcoming data releases will be the primary drivers of short-term volatility within the expected range. This means that traders and investors should closely monitor economic calendars and central bank communications, as any shift in monetary policy expectations could disrupt the current range.