EUR/USD holds near three-month lows despite weaker US manufacturing data

💡 DMK Insight

The Euro’s stability against the Dollar signals a potential shift in market sentiment, especially after disappointing US manufacturing data. Weak manufacturing figures often lead to speculation about the Federal Reserve’s next moves, which could affect interest rates and, consequently, the USD’s strength. Traders should keep an eye on the EUR/USD pair, particularly if it tests key resistance levels around recent highs. If the Euro can maintain its footing, it might attract more bullish sentiment, especially as the market digests the implications of the Fed’s policy direction. Conversely, if the USD rebounds, it could create a volatile trading environment. Watch for upcoming economic indicators from both the US and Eurozone, as these will likely influence the pair’s trajectory. The next few days could be crucial for establishing a clearer trend, so keeping tabs on the 1.05 level for EUR/USD could provide insights into potential breakout or reversal scenarios.