- The EUR/USD quotes in positive territory around 1,1390 in the first Asian session on Wednesday.
- Employment offers in the US fell to 7.19 million in March, the lowest level since September 2024.
- Operators prepare for retail sales, IPC and GDP data from Germany, followed by the US PCE report, which will be published on Wednesday.
The EUR/USD pair gains land to about 1,1390 during the first Asian session on Wednesday. The US dollar (USD) goes back to the euro (EUR) due to economic data of the US weakest than expected. The German economic data and the US Expenditure Price Index (PCE) of the United States for March will be at the Care Center later on Wednesday.
Employment offers in the US fell last month to the lowest level since September 2024, indicating a weaker labor demand amid a growing economic uncertainty, according to the US Labor Statistics Office on Tuesday. The figure decreased to 7.19 million in March from a review of 7.48 million in February, below the 7.5 million market consensus.
Meanwhile, the Conference Board Conference Index drastically fell to 86.0 in April from the previous reading of 93.9 (Revised 92.9), its lowest level since April 2020. This report suggests a weakening of the US economy of the US economy. work and weaker feeling of what is expected will increase concerns about economic impulse. This, in turn, has dragged the dollar down and acts as a wind in favor for the main torque.
The operators will closely follow the publication of retail sales, the consumer price index (CPI) and the advanced estimate of the Gross Domestic Product (GDP) of the first quarter of Germany. In addition, the preliminary GDP growth rate of the first quarter for the Eurozone will be published the same day. If the reports show a stronger result than expected, this could raise the shared currency in the short term.
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/AU (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.
