The EURUSD exchange rate surged above 1.17 last week and could be set for further gains.
The EURUSD saw a strong close in the weekly chart last week and that could see the bullish trend continue this week with support nearer 1.15.
Data on Tuesday will be the HCOB manufacturing PMI data for Germany at 3:50pm HKT. The German unemployment figures will be released at the same time with expectations for a weaker 15k addition, compared to last month’s 34k.
A speech from ECB policy maker Luis De Guindos at 3:40pm could also add volatility around the numbers. Further data comes at 5pm with the latest consumer prices for the eurozone. The latest consumer inflation data is expected to show a similar reading to a month earlier.
The euro is still advancing as traders see interest rates falling in the United States in the near future. President Trump said on Friday he would not appoint another head of the Federal Reserve who would not lower interest rates.
“If I think somebody’s going to keep the rates where they are or whatever, I’m not going to put them in,” Trump said. “I’m going to put somebody that wants to cut rates. There are a lot of them out there”.
“I’d love him to resign if he wanted to, he’s done a lousy job,” Trump added.
However, Powell has said that increases in tariffs this year are likely to push up prices and weigh on economic activity.
Markets now turn to the July 9 trade tariff pause deadline and Trump has hinted that he will not extend it further, which could add volatility ahead of the date.
