"Market Outlook: Fed Speeches and Data Awaited Amid Euro Strength and Dollar Weakness"

Tuesday's economic agenda appears notably subdued, featuring an anticipated appearance by German central bank President Joachim Nagel. During the US market session, Federal Reserve (Fed) officials are scheduled to deliver several speeches, likely echoing moderate tones similar to those heard on Monday.

Early Monday saw German sentiment surveys falling short of expectations, yet European markets are defying weak EU figures, buoyed by ongoing risk appetite. Market optimism hinges on expectations of a potential quarter-point interest rate cut at the Federal Open Market Committee's (FOMC) September 18 meeting. According to the CME's FedWatch Tool, rate traders are currently pricing in approximately a 70% probability of such a rate reduction.

Key economic data releases are slated for later in the week, leaving traders to focus on policymakers' statements in the interim. Thursday will bring an update on US Gross Domestic Product (GDP), while Friday will conclude the week with German Retail Sales data and the latest US Personal Consumption Expenditure (PCE) Price Index inflation figures.

The EUR/USD pair saw a modest recovery from last Friday's dip below 1.0670 as the new trading week begins with heightened risk appetite. This sentiment has pushed the US Dollar lower and supported the Euro, contributing to a relatively quiet Tuesday for investors.