"Powell's Stern Stance and Market Rally: A Weekly Forecast"

The euro weakened against the US dollar last week due to the Federal Reserve's hawkish stance and poor Chinese economic data. The upcoming week will see key releases of euro area and US CPI data, with focus on the potential sharp drop in euro area inflation. Technically, the EUR/USD pair remains sandwiched between the 200-day and 50-day moving averages, with a bearish undertone if flag support breaks. Retail traders are currently not net long on EUR/USD, according to IG Client Sentiment data.