EUR/USD bounces, while commercial conversations between the US and China occupy the center of the stage

• EUR/USD recovers above 1,1250 while the US dollar goes back from a maximum of almost a month.
• Investors focus on commercial conversations between the US and China on Saturday, with Lutnick from the USA.
• Rehn of the ECB says that the disinflation trend of the Eurozone is maintained and that the economic perspectives are gloomy.

The EUR/USD bounces about 1,1260 during negotiation hours in North America on Friday, from minimums of more than three weeks around 1,1200 early in the day. The major currency pair is recovered as the US dollar (USD) cautiously retreat before commercial conversations between USA (USA) and China scheduled for Saturday.

The US dollar index (DXY), which measures the value of the dollar against six main currencies, corrects about 100.40 from a maximum of almost a month of 100.85 registered earlier in the day.

Investors will pay special attention to commercial discussions between the US and China in Switzerland on Saturday. China is the second largest market for US imports after Mexico, according to the US Comtrade database on international trade. In addition, the commercial war between Washington and Beijing is the main trigger behind the downward revisions in global economic growth, given the competitive advantage in China’s labor costs.

The White House has expressed confidence that the war of tariffs between the US and China will break away after the meeting. “Descalada and the reduction of rates They are the goal for China, “said US Secretary of Commerce, Howard Lutnick, in an interview with CNBC on Thursday. Lutnick also showed confidence that Washington” will announce more agreements in the next month. “His comments occurred after the announcement of the commercial agreement between the US and the United Kingdom (UK).

Meanwhile, US President Donald Trump, has indicated that China tariffs could be reduced to 80% through a publication in Truth.Social. “The 80% tariff on China seems correct! It depends on Scott Besent,” Trump said.

What moves the market today: the EUR/USD wins despite the firm Dovish expectations of the ECB

• The recovery movement in the EUR/USD is also driven by the superior yield of the euro (EUR) in front of its peers on Friday. The euro progresses despite the fact that officials of the European Central Bank (ECB) show confidence that inflation is on its way to returning to the 2% target of the Central Bank, and concerns about economic perspectives.
• “Disinflation is on the way and the growth prospects are weakening, in the event that this is confirmed in our June forecast, then in my opinion, to achieve our symmetrical inflation target of 2% in the medium term, the correct reaction in monetary policy is to cut rates,” said the person in charge of policies of the ECB and governor of the Finnish Central Bank, Olli Rehn, during the European negotiation hours, Bloomberg Generally, the euro has a lower yield when ECB officials favor the expansion of monetary policy.
• Meanwhile, investors expect the US response regarding tariff countermeasures announced by the European Union Commission (EU) on Thursday. During European negotiation hours, the Governing Council member of the ECB Gediminas Šimkus said that “Eurozone inflation depends on the retaliation of the EU to the USA”“
• On Thursday, the European Commission launched a public consultation document that contains possible countermeasures in response to US tariffs. The document showed countermeasures about up to 95,000 million euros of US imports of US imports if commercial conversations do not achieve a satisfactory result for the block, which is a little less than 100,000 million euros reported by Bloomberg on Tuesday.

Technical Analysis: The EUR/USD maintains the 20 -day EMA

EUR/USD continues to find offers near the exponential (EMA) mobile average of 20 days around 1,1250.

The 14-day relative force (RSI) index is maintained within the range of 40.00-60.00, indicating that the bullish impulse has concluded for now. However, the upward trend still prevails.

Looking up, the psychological level of 1,1500 will be the main resistance for the torque. On the contrary, the maximum of April 3, 1,1145 will be a key support for the euros of the euro.