Category: Forex News, News
Euro recovery attempts remain shallow
EUR/USD registered small gains on Wednesday but failed to gather recovery momentum. The pair comes under renewed bearish pressure and trades below 1.1600 in the European session on Thursday.
Euro Price This week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 1.46% | 0.74% | 0.85% | 0.11% | 0.41% | 0.71% | 1.78% | |
| EUR | -1.46% | -0.73% | -0.64% | -1.33% | -1.05% | -0.73% | 0.31% | |
| GBP | -0.74% | 0.73% | -0.10% | -0.61% | -0.34% | -0.01% | 1.05% | |
| JPY | -0.85% | 0.64% | 0.10% | -0.68% | -0.39% | -0.02% | 0.97% | |
| CAD | -0.11% | 1.33% | 0.61% | 0.68% | 0.27% | 0.67% | 1.67% | |
| AUD | -0.41% | 1.05% | 0.34% | 0.39% | -0.27% | 0.31% | 1.37% | |
| NZD | -0.71% | 0.73% | 0.01% | 0.02% | -0.67% | -0.31% | 1.06% | |
| CHF | -1.78% | -0.31% | -1.05% | -0.97% | -1.67% | -1.37% | -1.06% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
A modest improvement in risk sentiment made it difficult for the US Dollar (USD) to build on its weekly gains on Wednesday but upbeat data releases from the US and news pointing to a widening crisis in the Middle East helped the currency keep its footing.
The data from the US showed on Wednesday that the Institue for Supply Management (ISM) Services Purchasing Managers’ Index (PMI) rose to 56.1 in February from 53.8 in January, reflecting an ongoing expansion in the services sector’s business activity at an accelerating pace. Additionally, Automatic Data Processing (ADP) reported that employment in private sector rose 63K in February, surpassing the market expectation of 50K.
Late Wednesday, the US Senate rejected a resolution that was aimed at forcing US President Donald Trump to seek congressional approval for further military action against Iran. Meanwhile, CNN reported that a top US official said that the US will start attacking deeper into Iran, noting that the operation is still in its early days.
The US Deparment of Labor’s weekly Initial Jobless Claims will be the only noteworthy data featured in the US economic calendar on Thursday. Investors are likely to ignore this report and opt to wait for the official employment data, which will be published on Friday.
Hence, investors will remain focused on geopolitical headlines. US stock index futures were last seen losing between 0.5% and 0.6% on the day, pointing to another risk-off action in the American session that is likely to help the USD preserve its strength and weigh on EUR/USD.
EUR/USD Technical Analysis:
In the 4-hour chart, EUR/USD trades at 1.1583. The near-term bias stays bearish as the pair holds well below the 20-, 50- and 100-period Moving Averages (MAs), with the shorter MAs trending lower under the 200-period MA and reinforcing downside pressure. Price action clings to the lower side of the Bollinger Bands, reflecting persistent selling interest rather than a volatility spike, while the Relative Strength Index (RSI) near 30 signals oversold momentum but not yet a decisive rebound.
Immediate resistance emerges at 1.1670, where a horizontal barrier aligns above the declining 20-period MA and would need to give way to ease the current bearish tone. On the downside, initial support is seen around 1.1531, with a break opening the door toward 1.1500 and then 1.1460, levels that frame the next downside targets if sellers extend control.
(The technical analysis of this story was written with the help of an AI tool.)
Euro FAQs
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day.
EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy.
The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa.
The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control.
Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency.
A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall.
Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period.
If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Written by : Editorial team of BIPNs
Main team of content of bipns.com. Any type of content should be approved by us.
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