EUR/USD stays above 1.1550 as market feels calm
The Euro is holding steady around 1.1560 during early Monday trading. The market mood has improved, especially as worries about the Israel-Iran conflict have gone down. Last week, the EUR/USD pair even touched 1.1631, its highest level in almost three years.
The main reason the Euro is getting support is because the European Central Bank (ECB) and the U.S. Federal Reserve (Fed) are following different plans. Earlier, most people thought the ECB would cut interest rates in September. But now, fewer people believe that will happen. This means the ECB might wait longer before lowering rates.
At the same time, the Fed is expected to keep interest rates the same in its meeting on Wednesday. Still, there’s a chance they might cut rates in September. People are waiting to see the Fed’s new updates and future plans.
Impact: The Euro could stay strong if the ECB doesn’t rush to cut rates. If global tensions remain low, the EUR/USD pair might continue to move up slowly.