The EUR/USD has recently maintained a pump momentum, approaching 1.1780 during the Asian trading session on Tuesday. This wave of rise is mainly attributed to the weak trend of the USD. The employment data for August released last week was worse than expected, leading the market to believe even more that the Fed might cut interest rates in September, and may even expand the action to 50 basis points.

According to recent market tools, the possibility of the Fed cutting interest rates by 25 basis points in the September meeting is close to 90%, while the probability of a 50 basis point cut is about 10%. Later that day, the benchmark revision of the U.S. non-farm payroll data may become the focus.

Next, the United States will release a series of important economic data, among which two inflation reports are the most critical. On Wednesday, the Producer Price Index (PPI) for August will be released, with the market expecting a year-on-year increase of 3.3%, while the core indicator is expected to rise by 3.5%. Subsequently, the focus will shift to the Consumer Price Index (CPI) to be announced on Thursday.

In Europe, France is facing a new political storm as Prime Minister François Baroin failed a confidence vote in the National Assembly, leading to political turmoil. Baroin unexpectedly initiated the vote due to strong opposition to his budget plan. Reports indicate that French President Emmanuel Macron is expected to appoint a new Prime Minister within a few days.

At the same time, the market widely expects the European Central Bank to keep interest rates unchanged at Thursday's meeting, citing robust economic growth and inflation close to target. Investors will closely watch for possible guidance on future outlook during the meeting.

What impact do these changes have on the market? Feel free to leave a message to share your thoughts!