The EUR/USD pair saw a notable overnight increase.
On Tuesday, the primary currency pair reached its highest point in October, with the current EUR/USD exchange rate standing at 1.0680.
The surge in US government bond yields, which reached 5% and attracted substantial trader attention, retraced from its peak.
Additionally, the currency pair found support from a reduction in geopolitical risks. The market has responded positively to the lack of escalations in conflicts and some diplomatic progress.
The upcoming week promises a full macroeconomic calendar. The US will release the PMI report and the Core PCE index, a specific inflation component closely monitored by the Federal Reserve. Furthermore, the US is set to publish preliminary Q3 GDP data. On Thursday, the European Central Bank will convene for a meeting. While significant changes in monetary policy are unlikely, the outcomes are worth monitoring. Both the ECB and the Fed are prepared to ease credit and monetary policies in June-July 2024.