EURUSD rose on weak consumer sentiment data from the United States.

The EURUSD begins the week by extending its gains, trading at higher levels around 1.0670 during Monday’s Asian session. The EU is gaining ground, most likely as a result of the disappointing consumer mood data. Provided by the United States (US) on Friday.

The preliminary US Michigan Consumer Sentiment Index was 67.7. Representing a decrease from the prior number of 69.5. The  result also fell short of the predicted level of 69.1 for September.

The decline in US bond rates is putting pressure on the US Dollar (USD).

The US Dollar Index (DXY), which measures the performance of the US dollar versus six other major currencies, gained 0.26% in its ninth week. However, the spot price is now trading at 105.30. Furthermore, US Treasury rates have totally retraced their earlier gains. Putting pressure on the dollar. At the time of writing, the yield on the US 10-year bond was 4.32%.

The Fed’s chances of raising interest rates again by the end of the year is reinforced by strong US economic statistics.

Key economic reports from the United States have continuously shown healthy economic conditions over the last week. These positive economic indicators support the US Federal Reserve’s (Fed) goal to raise interest rates again by the end of 2023.

The CPI stands for Consumer Price Index. A measure for measuring inflation outperformed expectations. Additionally, Retail Sales for the same month and Jobless Claims for the second week of September both showed positive results. Indicating a strong economic picture for the United States.

EURUSD investors will be watching the Fed’s interest rate decisions.

EURUSD investors will be watching the Fed’s interest rate decisions intently on Wednesday. The Federal Reserve is anticipated to leave interest rates steady. Market players will also pay close attention to the central bank’s announcements in the hope of gaining any signals or insights about the likely future direction of interest rates.

On the other hand, European Central Bank (ECB) President Christine Lagarde stated on Friday that policymakers were not considering further rate reduction. Lagarde also stated that the ECB intends to retain interest rates at high levels for the foreseeable future. over a lengthy period of time and was willing to raise them if required.

This statement expresses the ECB’s position on maintaining a cautious. And accommodating monetary policy while keeping open to modifications if economic conditions warrant them.

There are major events slated for the Eurozone in the next week. Including the release of the Eurozone Harmonized Index of Consumer Prices (HICP) for August on Tuesday. The preliminary HCOB Composite PMI for September is scheduled to be issued on Friday. Traders will be watching these data releases attentively for trade opportunities in the EURUSD pair.