FX.co ★ Hot forecast for EUR/USD on July 24, 2023

After the euro sharply traded lower last Thursday, which was mostly a rebound, we now expect a reverse bounce. And it seems that today it could become a reality since the EU and the US are set to release preliminary data on business activity indices. This is despite the fact that in Europe, the services PMI is expected to fall from 52.0 points to 51.5 points, and the composite PMI from 49.9 points to 49.8 points. The crucial point lies in the manufacturing index, which is likely to rise from 43.4 points to 43.5 points. In contrast, the United States is expected to have an even more pessimistic outcome. All gauges are expected to decline. The services PMI from 54.4 points to 54.0 points, and the manufacturing PMI from 46.3 points to 46.0 points. As a result, the composite PMI is likely to fall from 53.2 points to 52.6 points. In other words, although the reports are both considered negative, the US is expected to come out with worse numbers compared to Europe. And for that reason, the euro can edge up.