- EUR/USD rose 80 pips, or 0.76%, Tuesday.
- Fiber markets have evaded the worst of the current US tariff dispute.
- The key US data dominate the rest of the publications of the calendar of the week.
EUR/USD buyers found the accelerator on Tuesday, strengthening further to Fiber and sending the 1,0950 level again, although briefly. The pair tested new 22 weeks while the euro bulls continue to press more in recovery territory.
The US data remains the focal point for currency operators this week. This week, EU’s economic data is remarkably scarce; However, important US data publications are scheduled consecutively for most of the week. The US Jolts job offers data were a bit stronger than anticipated, offering some stability to shaking markets. The job offers increased to 7.74 million in January, exceeding the forecast of 7.63 million and above the December 7.51 million figure, adjusted to the decline from 7.6 million.
On Wednesday, the US Consumer Price Index (CPI) data for February occupy the center of the stage. After an unexpected increase in consumer level inflation in January, which faded the hopes of a rapid return to feat cuts by the Federal Reserve (Fed) in 2025, markets largely anticipate a lower figure for February. It is projected that general CPI inflation decreases to 2.9%, from 3.0% year -on -year.
The US Price Index (IPP) inflation report is expected on Thursday. While there are hopes of a trend of inflation in decreased consumer prices, inflation at the business level is probably persistently high, with the underlying inflation of the expected IPP in 3.6% year -on -year.
On Friday will conclude with the consumer’s feeling index of the University of Michigan for March, along with the UOM consumer inflation expectations. It is predicted that the UOM’s feeling index decreases slightly to 63.4 from 64.7, reflecting a weakening of economic perspectives in the midst of Donald Trump’s efforts to turn on a global commercial war simultaneously with multiple countries.
EUR/USD price forecast
The EUR/USD has closed flat or upwards in all but one of the last six consecutive negotiation sessions, rising 5.5% in the process. The Fiber has risen almost 7.6% since the last important minimum about 1,0175, with bulls easily breaking the 200 -day exponential mobile average (EMA) in the process.
The EUR/USD now faces a technical resistance just north of the 1,0900 zone, a technical region that baffled the bulls of the euro the last time in October and November last year.
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/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.
