EUR/USD Stabilizes around Mid-1.0800s; Anticipates Rate-Cut Signals from Fed and ECB

The EUR/USD pair remains steady around the mid-1.0800s today, showing little movement amid mixed signals from economic factors. Traders are hesitant, waiting for important events from central banks this week before making significant moves. Specifically, they’re watching for Federal Reserve Chair Jerome Powell’s congressional testimony and the European Central Bank’s monetary policy decision.

Investors are also eyeing upcoming US economic data, notably the Nonfarm Payrolls report due on Friday. Reduced expectations for aggressive interest rate cuts by the ECB are supporting the euro, while anticipation of rate cuts by the Fed is weakening the dollar.

However, a slightly cautious tone in global markets, as seen in softer equity prices, is boosting the safe-haven appeal of the US dollar and preventing significant gains in the EUR/USD pair. Traders are waiting for clearer signals before committing to a direction, particularly considering the recent rebound in the pair from its recent lows. They’ll be watching for any impact from the final Eurozone Services PMIs before focusing on the US ISM Services PMI.

EUR/USD