The euro traded around $1.16 in mid-August, a bit below recent highs, amid uncertainty surrounding economic data, political events, and monetary policy decisions. Traders are watching the upcoming meeting between US and Russian presidents regarding the Ukraine conflict, and are also considering the possibility of Fed rate cuts in the US and further ECB action before the end of the year. Economic data shows moderate growth and stable inflation in the Euro area, but the looming threat of US tariffs adds to the overall risk.
- The euro hovered around $1.16 in mid-August.
- A meeting between US and Russian presidents concerning the Ukraine conflict is scheduled.
- Ukrainian President Zelenskyy is reportedly not expected to participate in the US and Russian president meeting.
- Expectations are growing for imminent Fed rate cuts.
- The ECB ended its current easing cycle in July.
- Some market participants foresee another ECB rate cut before year-end.
- Euro area GDP grew 0.1% in Q2.
- Inflation held steady at 2% in July.
- The EU faces 15% tariffs on most European goods exported to the US.
The asset’s near-term performance appears to be tied to several external factors. Geopolitical events, specifically the meeting regarding the Ukraine conflict, could influence investor sentiment. Monetary policy decisions in both the US and Europe also play a significant role, with potential Fed rate cuts and the possibility of further ECB easing impacting the asset’s value. Economic data from the Euro area, along with the threat of US tariffs, will further contribute to its trajectory.