US Fed Chair Powell due to testify before US federal committees this week.
EUR/USD stumbled on Monday after a muddled election outcome in France leaves policy guidance unclear for the Euro bloc. A coalition minority government win in France kept a financially-disastrous far right party out of the leadership race after a strong upset in earlier European Parliamentary elections. Still, the win was anything but decisive as a hodge-podge of coalition parties with conflicting ideologies is set for policy deadlock in France in the coming months.
Forex Today: All eyes on Powell
Federal Reserve (Fed) Chairman Jerome Powell is set to make the first of two appearances this week as the Fed head delivers the semiannual Monetary Policy Report to the US Senate Banking Committee. This will be followed up by a second appearance on Wednesday to deliver the same report to the US Congressional House Committee on Financial Services.
Later this week, key US inflation data will be released. The US Consumer Price Index (CPI) inflation is due on Thursday, and the Producer Price Index (PPI) wholesale inflation is slated for Friday. Some traders who are hoping for a decrease in inflation to push the Fed into making rate cuts sooner rather than later may be disappointed. Forecasts suggest that both CPI and PPI inflation figures are expected to either remain steady or increase slightly.
Final German inflation figures will be published during the Thursday European market session. German Harmonized Index of Consumer Prices (HCOB) inflation is broadly expected to hold steady 2.5% YoY as inflation pressures continues to vex the Bundestag’s 2% inflation target.
Fiber is struggling after repeated near-term failures to breach above 1.0840, and bulls are running out of gas as the 200-hour Exponential Moving Average (EMA) rises into 1.0780, keeping a tight floor under intraday price action.
Daily candles continue to churn in the midrange of a rough descending channel through 2024, and EUR/USD is set to face a drooping technical ceiling as the upper bound eases to 1.0850.