Investors focus on upcoming US economic reports to gauge potential Fed rate moves in September after last week’s volatility.
EUR/USD opened the week at approximately 1.1540, stabilizing after recent volatility tied to Federal Reserve policy shifts. Market attention has pivoted to a series of US economic releases, which could influence expectations for a September rate hike or signal a slowdown in inflation pressures.
Last week’s Fed meeting left rates unchanged, but commentary on inflation and labor market strength remains critical. Analysts anticipate data on employment, consumer spending, and inflation to clarify the US economic trajectory, with consensus leaning toward a potential 25-basis-point hike if figures remain robust.
Traders are closely monitoring these releases, as stronger-than-expected data could reinforce hawkish Fed bets, while weaker prints may fuel dovish repricing.