- EUR/USD won 0.5% after the dollar flows were reduced on Tuesday.
- European economic data is still scarce, and the president of the FED, Powell, commented on a stable rate plan.
- The inflation figures of the IPC and the US IPP will be published in the middle of the week.
The EUR/USD broke a three -day run, recovering land and bouncing right north of 1,0350 as the flows of the general market withdrew from the US dollar, safe refuge, and the feeling of investors recovered in general. Investors are dismissing the latest tariff threats of the US president, Donald Trump, and the president of the Federal Reserve (Fed), Jerome Powell, reiterated the dedication of the Fed to follow a focus dependent on the data before the volatile and inconsistent commercial policy of the Trump government.
- Jerome Powell testimony: will commit to follow the data on the effects of tariffs
- Williams of the Fed: USA should grow 2% in 2025, 2026
- Fed Hammack: It is probably appropriate to keep the stable rates for some time
European data publications are generally warm this week. The Harmonized Index of Final Consumption of Germany for the year ended in January will be published on Thursday, together with the figures of the Gross Domestic Product of the EU for the fourth quarter, scheduled for Friday. Neither of the two data is expected to move the needle a lot, since no figure is preliminary and European data tends to be well forecast and discounted before the publications calendar.
Forex today: the US key IPC takes the center of the stage in the middle of a cautious fed
The US Consumption Price Index (CPI) will be the dominant publication on Wednesday. The general inflation of the US CPI is expected to be maintained at 2.9% year -on -year, while the underlying inflation of the IPC is expected to fall to 3.1% compared to the last data of 3.2%. The US Producer Price Index (IPP) continues on Thursday, with underlying business level that is expected to cool slightly 3.3% year -on -year from 3.5%.
EUR/USD price forecast
The EUR/USD operators found the purchase button and reinforced the torque above 1,0350 on Tuesday. The par broke a three -day run. Even so, the impulse remains limited, and the pair continues to operate in a family congestion zone just below the 50 -day exponential mobile average (EMA) about 1,0430.
EUR/USD daily graphics
Euro Faqs
The euro is the currency of the 19 countries of the European Union that belong to the Eurozone. It is the second most negotiated currency in the world, behind the US dollar. In 2022, it represented 31 % of all foreign exchange transactions, with an average daily business volume of more than 2.2 billion dollars a day. The EUR/USD is the most negotiated currency pair in the world, with an estimate of 30 %of all transactions, followed by the EUR/JPY (4 %), the EUR/GBP (3 %) and the EUR/AUD (2 %).
The European Central Bank (ECB), based in Frankfurt (Germany), is the Eurozone reserve bank. The ECB establishes interest rates and manages monetary policy. The main mandate of the ECB is to maintain price stability, which means controlling inflation or stimulating growth. Its main tool is the rise or decrease in interest rates. Relatively high interest rates (or the expectation of higher types) usually benefit the euro and vice versa. The GOVERNMENT BOOK of the ECB makes decisions about monetary policy in meetings that are held eight times a year. The decisions are made by the directors of the National Banks of the Eurozone and six permanent members, including the president of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the harmonized consumer prices index (IPCA), are an important economic indicator for the euro. If inflation increases more than expected, especially if it exceeds 2% of the ECB, it forces the ECB to rise interest rates to control it again. Relatively high interest rates compared to their counterparts usually benefit the euro, since they make the region more attractive as a place for global investors to deposit their money.
Published data measure the health of the economy and can have an impact on the euro. Indicators such as GDP, manufacturing and services PMIs, employment and consumer trust surveys can influence the direction of the single currency. A strong economy is good for the euro. Not only attracts more foreign investment, but it can encourage the ECB to raise interest rates, which will directly strengthen the euro. Otherwise, if economic data is weak, the euro is likely to fall. The economic data of the four largest economies in the euro zone (Germany, France, Italy and Spain) are especially significant, since they represent 75% of the economy of the euro area.
Another important fact that is published on the euro is the commercial balance. This indicator measures the difference between what a country earns with its exports and what you spend on imports during a given period. If a country produces highly demanded export products, its currency will gain value simply by the additional demand created by foreign buyers seeking to buy those goods. Therefore, a positive net trade balance strengthens a currency and vice versa in the case of a negative balance
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
