EUR/USD: ✨️HAS IT TIME FOR THE REBOUND?🤔 EVERYTHING WILL DEPEND ON GDP AND PCE👌

After having progressed slightly on Friday, the EUR/USD remains well oriented this Monday morning, trying to get back above 1.09 at the time of writing this article, after lows below 1.0850 last week.

🧏Remember that the Euro Dollar had suffered from a clear strengthening of the greenback, which benefited from the decline in the Fed's rate cut forecasts, after several economic data which surprised positively.

Thus, the Fed rate barometer now only shows a 46% probability that the Fed will lower its rates in March, compared to a peak of more than 85% earlier this month. However, this change in outlook seems to have been digested, allowing EUR/USD to regain some ground.

This week, expectations for the next Fed meetings may still be influenced by several key indicators, with Q4 US GDP and the PCE index to name only the most important data.

If these publications lead to a further decline in rate cut forecasts, the Dollar could strengthen again, to the detriment of the EUR/USD. Conversely, disappointing data would undoubtedly increase the chances of the Fed reducing its rates, which would benefit the Euro Dollar.