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The EUR\/USD pair trades on a weaker note around 1.0935, snapping a two-day winning streak during the early European session on Thursday. The Greenback edges higher as traders turn cautious ahead of the European Central Bank’s (ECB) monetary policy meeting later in the day. On the US docket, the weekly Initial Jobless Claims<\/a> and Philly Fed Manufacturing Index will be released.\u00a0<\/p>\n The ECB<\/a> is expected to leave interest rates<\/a> unchanged at its July meeting, awaiting further evidence of progress on inflation before adding to June\u2019s initial cut. Market players see another rate cut in September, with futures markets showing nearly 80% odds of a rate cut. \u201cPresident Lagarde\u2019s remarks should leave the door open to a rate cut in September, albeit with softer signaling than that which preceded the June cut.\u201d Said Bill Diviney, senior economist Eurozone<\/a> at ABN Amro.\u00a0<\/p>\n Across the pond, traders raise their bets for more aggressive rate cuts from the Fed amid signs that inflation is cooling toward the US central bank\u2019s target. On Wednesday, Fed Governor Christopher Waller said that the central bank is \u2018getting closer\u2019 to an interest rate cut as inflation’s improved trajectory and the labor market are in better balance. Meanwhile, Richmond Fed President Thomas noted that he is “very encouraged” that easing in inflation has begun to broaden and he would like to see it continue.\u201d\u00a0The dovish comments from Fed officials are likely to exert some selling pressure on the US Dollar (USD) and cap the pair\u2019s downside.\u00a0<\/p>\n The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted<\/a> for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR\/USD is the most heavily traded currency pair in the world, accounting<\/a> for an estimated 30% off all transactions, followed by EUR\/JPY (4%), EUR\/GBP (3%) and EUR\/AUD (2%).<\/p>\n<\/section>\n The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB\u2019s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates \u2013 or the expectation of higher rates \u2013 will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.<\/p>\n<\/section>\n Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB\u2019s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.<\/p>\n<\/section>\n Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone\u2019s economy.<\/p>\n<\/section>\n Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.<\/p>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n \u00a0<\/p>\n \u00a0<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" EUR\/USD weakens near 1.0935 in Thursday\u2019s early European session.\u00a0 The ECB is anticipated to maintain rates steady at its July meeting on Thursday.\u00a0 Fed officials said the central bank is \u2018getting closer\u2019 to the first rate cut amid signs of cooling inflation.\u00a0 The EUR\/USD pair trades on a weaker note around 1.0935, snapping a two-day […]<\/p>\n","protected":false},"author":2,"featured_media":16514,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,825,433,255,250,333,277,252,247,253,249,256,254],"class_list":["post-346810","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-ecb","tag-eurusd","tag-gta","tag-looks-rare","tag-macroeconomics","tag-majors","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/346810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=346810"}],"version-history":[{"count":3,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/346810\/revisions"}],"predecessor-version":[{"id":346816,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/346810\/revisions\/346816"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/16514"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=346810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=346810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=346810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Euro FAQs<\/h2>\n