FX.co ★ Euro Flat as Markets Await Key Data and Central Bank Signals

The euro stabilized slightly above $1.17, maintaining its position near last week's four-year peak of $1.192. Investors are closely watching the upcoming HCOB flash PMI survey, various monetary indicators, and a series of scheduled speeches by officials from both the European Central Bank (ECB) and the Federal Reserve, which have the potential to influence future policy directions. The ECB has indicated that its cycle of rate cuts might have concluded, with policymakers expressing concerns about ongoing inflation risks associated with tariffs, services, food prices, and fiscal measures. In contrast, the Federal Reserve recently lowered interest rates for the first time since December, hinting at a possible additional reduction of 50 basis points by the end of the year. However, Chair Jerome Powell characterized this rate adjustment as a "risk management" move, rather than the initiation of a broader easing cycle.