The pair is maintaining its position close to a multi-week high of 1.0829, benefitting from the weakening US dollar following a disappointing June US employment market report. Market anticipation is now building ahead of an upcoming speech by Federal Reserve Chair Jerome Powell.
Despite the looming potential for political deadlock in France, the euro has remained resilient. Investors are finding reassurance in the belief that the current political situation may act as a deterrent to any drastic fiscal measures from far-right or far-left parties, thereby stabilising the financial landscape.
With a relatively quiet macroeconomic calendar, attention is squarely on the US interest rate trajectory. According to CME FedWatch, the likelihood of a rate cut at the Fed’s September meeting has increased to 76%, up from 66% the previous week. Expectations are also growing for a second rate cut…
