EUR/USD - Overview from August 29, 2024

In the near future, attention will be focused on preliminary inflation data from Germany and Spain for August. A decrease in inflation to 2.3% and 2.5% respectively is projected. Any unexpected results may affect overall indicators in the euro area, which could strengthen arguments for further easing of ECB policy. Also on the agenda are weekly data on US unemployment benefit claims and final US GDP data for the second quarter.

The expected data releases could serve as catalysts for increased volatility in the EUR/USD pair.

At the moment, the 1.1100-1.1130 support described yesterday has held. With the release of news, the situation may develop. A drop in price below the 1.1100 level is more likely. About the probability of further decline or resumption of growth, in this case, could be judged only based on volatility and the behavior of traders when overcoming this mark.