Market Fundamental Analysis for August 21, 2026 EURUSD
EURUSD:
The euro enters the European session supported by a weaker US dollar. The greenback remains under pressure amid doubts over US Treasury measures to stabilize the bond market and concerns about the budget deficit. EURUSD is holding near multi-month highs.
The euro’s fundamental picture remains mixed but supports a bullish scenario. German producer prices rose 3.0% year on year in July, while markets continue to price in another possible ECB rate hike. However, the Bundesbank’s warning about Germany’s weak recovery limits support for the euro.
For the current session, dollar sentiment remains the key driver. Unless higher US Treasury yields restore sustained dollar demand, EURUSD retains moderate upside potential.
Trading idea: BUY 1.1690, SL 1.1660, TP 1.1765
