EUR/USD - Review of August 16, 2024

The publication of data from the US decreased the probability of a 50 basis point cut to the US Federal Reserve's key rate at the upcoming meeting. This information has supported the US dollar and provoked seller activity in the EUR/USD pair. The price confidently overcame the 1.1000 mark, moving down towards 1.0900.

This development does not guarantee a clear resumption of the pair's decline. Especially since yesterday's volatility was not enough for a confident test of the area around the 1.0900 level, and today we are already awaiting the end of the working week.

However, it should be noted that the strengthening of the US dollar against the Euro occurred against the backdrop of virtually recoilless growth of key US stock indices and the inevitable, sooner or later, correction of the indices may support the US dollar and, accordingly, put pressure on the Euro.