EURUSD InsightWelcome, subscribers!
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Key Points
- International credit rating agency Fitch downgraded France’s sovereign credit rating by one notch from AA- to A+, citing recent political risks and fiscal challenges. However, the agency assessed the outlook as “stable.”
- Russian and Belarusian forces plan to conduct joint military exercises until the 16th of this month in Russia, Belarus, the Baltic Sea, and the Barents Sea. In response, NATO is strengthening surveillance along Europe’s eastern front against potential Russian threats.
- The central bank governors of France, Spain, and Finland expressed concerns over economic growth and the possibility of disinflation, signaling a more dovish stance.
- At the upcoming FOMC meeting starting on the 16th, the Federal Reserve is expected to cut rates by 25 basis points. Markets are watching closely to see whether the “dot plot” projection for two rate cuts this year will increase to three cuts.
Major Economic Events This Week
+ September 16: U.S. August retail sales, Canada August CPI
+ September 17: Eurozone August CPI, Bank of Canada rate decision, FOMC announcement
+ September 18: Bank of England rate decision
+ September 19: Bank of Japan rate decision
EURUSD Chart Analysis
The EURUSD has shown no clear trend, moving sideways between 1.16000 and 1.18000 for the past two weeks. The key question this week is whether the pair will break above resistance and continue rising toward the 1.20000 level, or fail to do so and retreat back toward 1.15000. At this stage, the overall trend still appears slightly bullish.
