EUR/USD Maintains Gains Despite Dismal Eurozone Data
EUR/USD maintained a moderate buying tone on Monday (September 29th), consolidating around 1.1725 during the European session, after bouncing off a low of 1.1645 last week. Eurozone sentiment data has not yet cheered investors, but market concerns about a possible US government shutdown and expectations of a series of Federal Reserve interest rate cuts have kept the US dollar under pressure.
In Europe, the European Commission's Consumer Sentiment Index confirmed the slight improvement anticipated by preliminary figures, but remains well below the historical average, indicating that economic uncertainty is weighing on Eurozone consumer sentiment. Furthermore, Industrial Confidence deteriorated less than expected, while Service Sentiment continued to decline.
The main focus on Monday will be US President Donald Trump, who will meet with Republican and Democratic representatives in a last-ditch effort to avoid a government shutdown on Wednesday, the first day of fiscal year 2026. However, the likelihood of a last-minute deal appears slim, as the two sides remain widely divided, and markets are concerned that a government shutdown could delay the release of Friday's key Nonfarm Payrolls report, which could complicate the Fed's interest rate-setting activity if the data is not released before the central bank's October 28 meeting.
Later in the day, a series of speeches from the European Central Bank (ECB) will provide some fundamental context for the euro, while in the American session, a series of Fed officials are likely to provide further clues about the bank's near-term monetary policy. (alg)
Source: FXstreet
