EUR/USD steady as US shutdown deal progresses, Eurozone sentiment in focus

💡 DMK Insight

EUR/USD is holding steady at 1.1560, but here’s why that might change soon: The recent support for the US Dollar stems from political developments, particularly the Senate Democrats’ agreement to prevent a government shutdown. This stability could bolster USD strength in the short term, especially if it leads to increased investor confidence. Traders should keep an eye on upcoming economic indicators, like the next inflation report, which could influence the Fed’s stance. If inflation remains high, the Fed might lean towards more aggressive rate hikes, potentially pushing EUR/USD lower. But don’t overlook the flip side: if geopolitical tensions or economic data from the Eurozone disappoint, we could see a quick shift in sentiment. Watch for any signs of weakness in the Eurozone economy, as that could trigger a sell-off in EUR/USD. Key levels to monitor are 1.1500 for support and 1.1600 for resistance. A break below 1.1500 could open the door for further declines, while a push above 1.1600 might signal a bullish reversal.