Last week, the U.S. Federal Reserve cut interest rates by an unusual 50 basis points (bps). Additionally, policymakers have predicted another 50 bps rate cut by the end of the year.

Meanwhile, Christine Lagarde, President of the European Central Bank (ECB), commented that monetary policy must remain flexible in a constantly changing world. While the central bank primarily monitors inflation, it must maintain enough flexibility to respond to a rapidly evolving economy.

Investors are closely watching the Eurozone's Purchasing Managers' Index (PMI), particularly from Germany. This PMI will be a key indicator of business activity, whether in the manufacturing or services sectors, and will provide insights into current economic trends.

Source: Fxstreet