- EUR/USD gains 0.40%, breaking resistance amid disappointing US manufacturing and composite indices.
- ECB member Joachim Nagel emphasizes inflation targeting ahead of any possible rate cuts despite slowing inflation.
- Economic indicators due soon include US durable goods, first quarter GDP and Eurozone business confidence reports.
During the North American session on Tuesday, the Euro appreciated against the US Dollar, rising over 0.40%, and traded above a key resistance level. Weaker than expected US economic data weighed on the dollar, which is trading at a loss against most G8 currencies. EUR/USD is trading at 1.0705 after hitting a low of 1.0638.
EUR/USD rises to 1.0705 after worse-than-expected US manufacturing data
Recently, Bundesbank President and European Central Bank (ECB) member Joachim Nagel stated that the ECB must be convinced that inflation is heading towards its 2% target before cutting rates. This is because most ECB policymakers have opened the door to an easing policy due to slowing inflation.
Apart from this, data from the United States (US), revealed by S&P Global on Tuesday, showed that business activity in the manufacturing sector contracted. The manufacturing PMI went from 51.9 to 49.9 this month. On the other hand, the services index and the composite index slowed from 51.7 and 52.1 to 50.9, in both readings.
Other data showed new home sales jumped to a six-month high, according to the US Commerce Department, while building permits remained in contraction territory despite being revised upwards – 4.3% to -3.7%.
Meanwhile, the US economy continues to outperform its peers amid 525 basis points of rate hikes by the Fed since March 2022. The Fed meets next week and interest rates are expected to remain unchanged. changes. At the Fed parade last week, policymakers opposed three rate cuts, with most officials expecting only two or one.
Across the pond, the Eurozone HCOB PMI indices were solid: the composite index rose from 50.3 in March to 51.4 this month, while the services index rose from 51.5 to 52.9. The exception was the manufacturing PMI, which fell from 46.1 to 45.6
What should EUR/USD traders keep in mind?
In the United States, durable goods orders, gross domestic product (GDP) for the first quarter of 2024 and the Fed's preferred inflation indicator, the underlying personal consumption expenditure (PCE) price index. In the Eurozone, Germany's IFO business climate, Italy's business and consumer confidence, followed by Germany's GfK consumer confidence.
Related news
- Forex today: Improved risk appetite hurts the dollar
- EUR/USD Forecast: Temporary recovery?
- EUR/USD Forecast: Waiting for US GDP and inflation data
EUR/USD Price Analysis: Technical Outlook
From a technical point of view, EUR/USD traders, despite having recovered the 1.0700 figure, see more declines. If buyers achieve a daily close above the latter, it could pave the way for targeting 1.0800, capped by the confluence of the 50-day and 200-day moving averages (DMA) at 1.0806/11. Otherwise, if the pair closes below 1.0700, we will have to wait for a pullback to 1.0600.
EUR/USD
Overview | |
---|---|
Latest price today | 1.0707 |
Today's daily change | 0.0052 |
Today's daily change | 0.49 |
Today daily opening | 1.0655 |
Trends | |
---|---|
daily SMA20 | 1.0748 |
50 daily SMA | 1.0808 |
SMA100 daily | 1.0851 |
SMA200 Journal | 1.0815 |
Levels | |
---|---|
Previous daily high | 1.0671 |
Previous daily low | 1.0624 |
Previous weekly high | 1,069 |
Previous weekly low | 1.0601 |
Previous Monthly High | 1.0981 |
Previous monthly low | 1.0768 |
Daily Fibonacci 38.2 | 1.0642 |
Fibonacci 61.8% daily | 1.0653 |
Daily Pivot Point S1 | 1.0629 |
Daily Pivot Point S2 | 1.0603 |
Daily Pivot Point S3 | 1.0582 |
Daily Pivot Point R1 | 1.0676 |
Daily Pivot Point R2 | 1.0697 |
Daily Pivot Point R3 | 1.0722 |
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.