- EUR/USD rose 80 pips or 0.76%on Tuesday.
- Fiber markets have avoided the worst of the United States’ ongoing customs spat.
- The most important US data dominates the rest of the week’s calendar releases.
The EUR/USD bidders found the accelerator on Tuesday, further strengthened the fiber and sent the couple back in the 1,0950 level, albeit map. The couple tested in fresh 22-week heights as Euro Bulls continues to push further into the recovery area.
US data remains the focal point of eg dealers this week. This week, the EU’s economic data is especially sparse; However, significant US data releases are planned back-to-back for most of the week. The US data about job openings was a little stronger than expected, giving some stability to shaken markets. Job postings rose to 7.74 mi January and exceeded the forecast of 7.63 m and up from December’s revised numbers of 7.51 m, adjusted from 7.6 m.
On Wednesday, the US Consumer Price Index (CPI) takes inflation data for February the center. Following an unexpected increase in consumer level inflation in January, which jumped hope that a rapid return for Federal Reserve (FED) rate (FED) in 2025, markets expect largely a lower February number. Heading CPI inflation is expected to fall to 2.9%, down from 3.0% year-over years.
US manufacturer Price Index (PPI) Inflation report is expected on Thursday. While there is hope of a diminishing inflation trend in consumer prices, inflation at business level will probably remain persistently high, with the central PPI inflation expected to maintain a stable rate of 3.6% year-over-year.
Friday concludes with the University of Michigan Consumer Sentiment Index for March along with UOM’s consumer inflation expectations. The Uom mood index is expected to fall slightly to 63.4 from 64.7, reflecting a weakening of economic views in the midst of Donald Trump’s efforts to ignite a global trade war at the same time as several countries.
EUR/USD price forecast
EUR/USD has closed flat or higher for all except one of the last six consecutive trade session and increased 5.5% in the process. Fiber has climbed almost 7.6% bottom to top from the last large turn, low near 1,0175, with bulls that easily snap the 200-day exponential sliding average (EMA) in the process.
The EUR/USD now runs due to technical resistance just north of the 1,0900 grip, a technical region that flum -piered the euro pine last time back in October and November last year.
EUR/USD Daily Diagram
Frequently asked questions about euro
The euro is the currency for the 19 EU countries belonging to the euro zone. It’s the second largest traded currency in the world behind the US dollar. By 2022, it accounted for 31% of all currency transactions with an average daily turnover of over $ 2.2 trillion a day. EUR/USD is the most traded currency paper in the world that accounts for an estimated 30%discount on all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the Reserve Bank for the eurozone. The ECB sets the interest rate and manages monetary policy. ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher interest rates – will usually benefit the euro and vice versa. The ECB Board Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by managers of the national banks in the euro area and six permanent members, including the president of the ECB, Christine Lagarde.
Eurozone -inflation data, measured by the harmonized index for consumer prices (HICP), is an important econometric for the euro. If inflation increases more than expected, especially if over ECB’s target of 2%, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its colleagues will usually benefit the euro as it makes the region more attractive as a place for global investors to park their money.
Data releases measure the health of the economy and can affect the euro. Indicators such as GDP, Manufacture and Services PMIs, Employment and Consumers’ Mood Investigations can all affect the direction of the individual currency. A strong economy is good for the euro. Not only does it attract more foreign investment, but it can encourage the ECB to set up interest rates that will directly strengthen the euro. Otherwise, if financial data is weak, the euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially important as they account for 75% of the eurozone economy.
Another significant data waiver for the euro is the trade balance. This indicator measures the difference between what a country earns on its export and what it spends on imports over a given period. If a country produces a lot of sought -after export, its currency will win in value exclusively from the extra demand created by foreign buyers trying to buy these goods. Therefore, a positive net spirit balance strengthens a currency and vice versa for a negative balance.