The euro is trying to regain height, but the manufacturing ISM and the NFP will be decisive
The euro has been trying to regain strength against its US counterpart since Thursday after falling to its lowest for the year near $1.0350. The single currency has been penalized in recent days by the absence of a more hawkish tone from the ECB as the latest inflation figures surprised on the upside in Spain and across the euro zone.
However, EUR/USD could regain strength in the short term as some ECB members, mostly in the Baltics, are publicly in favor of a 50 basis point rate hike at the next meeting. , while the consensus and the Committee are still counting on 25 basis points.
The idea of a 50 basis point rate hike at the next ECB meeting is not yet widely accepted, but is a possibility given that inflation has continued to accelerate to yet another record high of 8, 6% in June.
In this context, the next declarations of the members of the ECB will be important for the EUR/USD. In parallel, operators will also closely monitor the ISM manufacturing index this afternoon, then the monthly report on employment in the United States next Friday.
EUR/USD daily price chart – key levels