Euro stabilises after losses – London Business News | Londonlovesbusiness.com

The Euro has remained stable early in the European session. The currency faced a third consecutive week of losses but remained within a broad range and remained near similar levels since the beginning of 2023.

Eurozone bond yields could remain under pressure and have been declining this month. Weak GDP figures in Germany and expectations of a softer monetary policy could continue to weigh on yields. In this regard, traders continue to monitor new data including inflation data in Germany.

Traders also turn their attention to the Federal Reserve which is expected to keep interest rates unchanged on Wednesday but might provide some guidance on future cuts. Any deviation from this expectation could strengthen the dollar and weigh on the euro. The US jobs report on Friday could also affect the euro-dollar pair. Thus, weaker-than-expected figures could fuel Fed policy easing expectations, limiting the upside potential of the US dollar.