Euro futures rally to eight-week high

Euro futures experienced a notable rally, reaching an eight-week high and pushing toward the strongest close since mid-June.

The September contract saw positive momentum, setting up for a second consecutive week of higher prices.

Mixed economic data out of Germany provided underlying support, with factory orders rising 3.1% and industrial production increasing for a third consecutive month, despite a narrowing trade surplus.

Furthermore, shifting rate differentials continue to favor the euro.

While the ECB held its key rate at 2.25% in July following a June hike, markets anticipate potential further tightening.

Conversely, softer U.S. labor data has led to expectations that the Fed will remain on hold.

This divergence in monetary policy expectations acts as a significant tailwind for Euro futures heading into the close of the week.