The EUR/USD price continued falling as concerns of a more hawkish Federal Reserve pushed the US dollar to a multi-week high.
Second, officials said that the bank should be cautious about hiking interest rates so soon. As a result, analysts believe that the Fed will continue hiking interest rates but at a relatively slow pace. Besides, last week’s housing data showed that the sector is weakening.
Meanwhile, the European economy is contending with numerous challenges. The most important challenge is on the bloc’s energy crisis since analysts expect that Russia will completely stop natural gas deliveries towards winter. At the same time, Norway has warned that it could stop electricity exports because of low water levels in its hydroelectric power plants. Additionally, business is being hindered because of shrinking water levels in Europe. Many companies use rivers to ship important items like coal and auto parts.investors will focus on the upcoming flash manufacturing and services PMIs that are scheduled for Tuesday.