Euro Climbs as Dollar Softens… Markets Brace for Big Data from Germany and the US

The EUR/USD pair is showing a gentle upward bias for the second straight session, holding above the 1.15 level ahead of Tuesday trading. While the move lacks strong momentum, the broader market tone is clearly shifting in favor of the euro as pressure builds on the US dollar.

The greenback has been losing steam after growing expectations that the Federal Reserve may deliver another rate cut in December. Recent remarks from Fed officials suggested that current policy may be “more restrictive than necessary,” signaling that easing could be back on the table. Traders reacted quickly, pricing in a strong probability of a near-term cut—an outlook that has weighed heavily on the dollar and helped the euro stabilize.

On the euro side, sentiment is supported by widespread expectations that the European Central Bank will hold rates steady for the remainder of the year and likely through next year as well. This contrast—uncertainty around US monetary policy versus perceived stability in the eurozone—has provided the currency pair with additional support.

Market attention now turns to the economic data ahead. Germany’s final Q3 GDP reading is set for release and could offer key insight into the health of Europe’s largest economy. Meanwhile, the US calendar is packed with delayed data including wholesale inflation figures, retail sales, pending home sales, and the Richmond manufacturing index. Any surprise in these numbers may quickly reshape sentiment and inject stronger volatility into EUR/USD.

For now, the pair remains in a cautiously positive posture, navigating between shifting central-bank expectations. The coming days could deliver sharper moves as both sides of the Atlantic unveil data that may redefine how traders position themselves into December.

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