- The EUR/USD rose on Tuesday, but is still limited by 1,1300.
- Despite a short -term recovery, the euro remains below the recent maximums against the US dollar.
- The US PMI figures will be the publication of key data this week.
The EUR/USD experienced a rebound for the second consecutive day on Tuesday, promoting the torque back to the area of ​​1,1300. Despite a short -term increase in the bullish impulse that supports Fiber, the EUR/USD remains well below the recent maximum of several years about 1,1575. The pair has found a firm technical support in key mobile socks, and the general feeling of the market is still hopeful, with the expectation that traders can continue to find reasons to press the purchase button.
Tariffs dominate market perception, but US data is coming
Those responsible for European policies are currently immersed in G7 meetings, minimizing the drip of notable headlines of the EU decision makers. The general feeling of the market continues to depend completely on the US commercial holders, with investors waiting for agreements with the Trump administration to encourage President Donald Trump and his team to remove the head of tariffs from the head of his own economy. Despite the general optimistic tone in global markets, constant drift towards the unknown is beginning to limit the upward feeling. The Trump administration quickly approaches its own self -imposed term of 90 days on its “reciprocal tariffs” package. While some possible trade agreements have been announced, there has been nothing concrete.
On Wednesday there will be a limited data agenda, with only medium level data on offer on both sides of the Pacific. The figures index of purchasing managers (PMI) of the US will arrive mixed on Thursday is expected. The US manufacturing PMI is expected to be 50.1 from 50.2, while the service component is expected to remain flat at 50.8.
EUR/USD price forecast
The Fiber rose four tenths of one percent against the dollar on Tuesday, leading to the EUR/USD within the contact range of the 1300 zone. The torque is still experiencing an intermittent bundle bounce but determined from the 50 -day exponential (EMA) mobile average just below 1,1100, but the uprising impulse of the price still has a long way to go to recover the maximum of several years above 1,1500 reached in April.
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.
