EURUSD falls below 1.0840 ahead of key Eurozone and US events.

EURUSD falls to around 1.0835 during Monday’s European session. The major currency pair falls amid concern around the Eurozone’s preliminary Harmonized Index of Consumer Prices (HICP) for July and the Federal Reserve’s (Fed) monetary policy decision on Wednesday.

The ECB may slash interest rates twice more this year.

The Eurozone inflation report will show whether market forecasts for two more rate cuts by the European Central Bank (ECB) this year are justified. A few ECB policymakers satisfied with speculation of two more rate cuts notwithstanding a bleak economic outlook confidence that price pressures will return to the target rate of 2% next year.
German Finance Minister Christian Lindner acknowledged sluggish demand in the Eurozone’s largest country and provided tax breaks for firms and people to encourage spending and investment.
Annually, the headline and core HICP, which exclude volatile categories such as food, energy, alcohol, and tobacco, are expected to fall to 2.3% and 2.8%, respectively.
Before the Eurozone inflation data, investors will look at the preliminary Eurozone Q2 GDP and inflation figures for Germany and Spain, which will be released on Tuesday.

Daily Market movers: EURUSD declines ahead of significant economic events.

EURUSD falls below 1.0840 on Monday’s European session as the US Dollar (USD) advances, with investors. Concentrating on the Federal Reserve’s interest rate decision. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rises to around 104.50.
The Fed projected to keep interest rates unchanged at 5.25%-5.50%. As a result, markets will closely watch the monetary policy statement and Fed Chair Jerome Powell’s press conference for new clues on rate decreases.
Market experts expect the Fed to communicate freely about rate decreases at the September meeting, despite strong progress in lowering inflation to the bank’s target of 2% and mounting labor market uncertainties. Fears about inflation continuing persistent have subsided as input prices have fallen dramatically in the recent quarter flash.

United States’ (US) Q2 GDP report revealed that the Price The Price Index fell quicker than expected, to 2.3%.

The United States’ (US) Q2 GDP report revealed that the Price The Price Index fell quicker than expected, to 2.3%, down from 2.6% and 3.1% in the previous edition.
Furthermore, sticky US core Personal Consumption Expenditures Price Index (PCE) data for June failed to dampen expectations for Fed rate decreases in September. Monthly core PCE inflation increased at a faster rate of 0.2% than expected and the previous report of 0.1%, with annual data rising consistently by 2.6%.
This week, investors will also pay attention to a deluge of economic data, including JOLTS Job Openings for June, ADP Employment Change, ISM Manufacturing Purchasing Managers Index (PMI), and Nonfarm Payrolls data for July.