Ella 
In early Asian trading on Monday, EUR/USD attracted some selling around 1.0885. EUR/USD fell on risk aversion, triggering a new round of buying in the dollar. Eurozone industrial production in May, New York Empire State Manufacturing Index in July and a speech by Federal Reserve official Mary Daly will be released on Monday.
The US producer price index (PPI) measured by the producer price index (PPI) rose to 2.6% in June after the previous revised value of 2.4%, higher than the expected value of 2.3%. The core producer price index increased by 3.0% year-on-year, higher than the expected value of 2.5%. However, the recent cooling of consumer price index (CPI) inflation, which has triggered expectations of interest rate cuts, remains the focus of market attention.
In addition, the University of Michigan Consumer Confidence Survey fell to 66.0 in July from 68.2 in June, recording the lowest level in 7 months and lower than the expected value of 68.5. The University of Michigan’s 5-year consumer inflation expectations fell slightly to 2.9% in July from 3.0% in the previous value.
Fitch analysts said that the Federal Reserve may cut interest rates earlier, citing the Fed’s concerns about the labor market. The Fed will be worried that the labor market will be weaker next.
The political murders in the United States last weekend boosted safe-haven currencies such as the US dollar and formed a negative for EUR/USD. Former President Donald Trump was injured in an assassination attempt at a rally in Butler, Pennsylvania last Saturday. According to the BBC, one spectator was killed in the attack, two others were seriously injured, and Trump was photographed with a bloody ear.
On the euro side, officials expect price pressures to remain close to current levels throughout the year, reducing expectations of further interest rate cuts by the European Central Bank (ECB). ECB President Christine Lagarde underscored her cautious approach this month, saying: “The strong labor market means we can take our time to gather new information, but we also need to be mindful of the fact that the outlook for growth remains uncertain.”
