Daily Forex Analysis

The euro held steady near 1.1690 in early Asian trading on Monday after last week’s 0.5% gain, supported by a dovish Federal Reserve outlook and softer U.S. data.

The euro stayed near $1.1660 ahead of the Trump-Putin meeting on Ukraine, while the yen climbed to 147 after Japan’s stronger Q2 GDP fueled BOJ hike speculation.

The euro traded near 1.1770, a three-week high, as soft US inflation pushed the dollar to its weakest since late July and strengthened Fed rate cut expectations.

Global markets ended the week on a positive note as soft U.S. economic data and cooling inflation raised expectations for a September Federal Reserve rate cut. The euro recovered on steady inflation and ECB easing prospects, while the pound remained resilient despite weak UK labor market data. 

Traders await Trump-Putin talks, US CPI data, and central bank signals, with major currencies, gold, and silver seeing measured moves.

The euro rose to 1.1660 on optimism over potential Ukraine-Russia peace talks, while the yen held steady as the Bank of Japan signaled room for further hikes. Gold slipped on easing geopolitical tensions, though trade concerns and Fed cut expectations capped losses. 

The euro held steady near 1.1660 on Friday, supported by hopes of a Russia-Ukraine peace summit and weaker U.S. economic data that fueled Fed rate cut expectations. 

Markets showed cautious strength in early August as expectations for U.S. interest rate cuts continued to grow following weaker labor data and renewed tariff threats.