After the publication of US inflation data for June 2024, the EUR/USD currency pair showed noticeable fluctuations. The inflation data turned out to be lower than expected, which influenced market sentiment regarding the future monetary policy of the Federal Reserve (Fed) and, accordingly, the dynamics of the euro against the dollar.

Against the background of this news, the euro-dollar exchange rate initially showed strengthening. The euro reached the 1.09 level zone against the US dollar. This strengthening was due to the weakening of the dollar caused by expectations of lower interest rates. Investors began to revise their forecasts for the dollar exchange rate, expecting a softer monetary policy from the Fed. However, subsequently, even before the opening of European markets, the Euro lost about half of the progress achieved.

The single European currency is still under the influence of the resistance zone between the levels of $1.0850 and $1.0900. But even above $1,0900, movement may be difficult, so purchases from current levels with expectations of significant movements are likely to be too optimistic.