EUR/USD Forecast and News
EUR/USD holds steady near 1.0800 after German sentiment data
EUR/USD stays in a consolidation phase at around 1.0800 on Tuesday after closing in positive territory on Monday. The upbeat ZEW sentiment data from Germany fails to provide a boost to the Euro as investors await producer inflation data from the US and Fed Chairman Powell's speech.
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EUR/USD Technical Overview
1.0790-1.0800 (Fibonacci 50% retracement of the latest downtrend, static level) area forms initial resistance for EUR/USD. In case the pair climbs above that level and starts using is as support, it could target 1.0830 (Fibonacci 61.8% retracement) and 1.0900 (Fibonacci 78.6% retracement) next.
On the downside, supports could be seen at 1.0751.0740 (Fibonacci 38.2% retracement, 200-period Simple Moving Average (SMA) on the 4-hour chart), 1.0720 (100-period SMA) and 1.0700 (Fibonacci 23.6% retracement).
Fundamental Overview
EUR/USD benefited from the modest selling pressure surrounding the US Dollar (USD) and closed in positive territory on Monday. The pair stays relatively quiet below 1.0800 early Tuesday ahead of key events.
The slight improvement seen in risk mood made it difficult for the USD to find demand at the beginning of the week and allowed EUR/USD to stretch higher. Meanwhile, Federal Reserve Vice-Chairman Philip Jefferson said that he was in favor of maintaining current interest rates until there was evidence of moderation in price pressures, helping the USD limit its losses.
The US Bureau of Labor Statistics will release the Producer Price Index (PPI) data for April later in the session. Markets expect the PPI to rise 0.3% on a monthly basis following the 0.2% increase recorded in March. A stronger-than-forecast monthly PPI increase could provide a boost to the USD and force EUR/USD to turn south. On the other hand, a soft PPI print ahead of Wednesday's Consumer Price Index (CPI) data could trigger a risk rally, hurting the USD and helping EUR/USD gain traction.
Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech at 14:00 GMT. If Powell pushes back against expectations for a policy pivot in September, the market positioning suggests that the USD could outperform its rivals. According to the CME FedWatch Tool, the probability of the Fed leaving the policy rate unchanged in September stands around 40%.
SPECIAL WEEKLY FORECAST
Interested in weekly EUR/USD forecast? Our experts make weekly updates forecasting the next possible moves of the Euro-US Dollar pair. Here you can find the most recent forecast by our market experts:
EUR/USD: A better mood puts pressure on the US Dollar Premium
The EUR/USD pair seesawed in a tight range just above the 1.0700 threshold for most of the week, with the US Dollar (USD) finally giving up and extending its slide while heading into the weekly close.
EUR/USD Big Picture
EUR/USD Bullish Themes
EUR/USD Bearish Themes
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Editors' picks
EUR/USD holds steady near 1.0800 after German sentiment data
EUR/USD stays in a consolidation phase at around 1.0800 on Tuesday after closing in positive territory on Monday. The upbeat ZEW sentiment data from Germany fails to provide a boost to the Euro as investors await producer inflation data from the US and Fed Chairman Powell's speech.
GBP/USD drops below 1.2550 after UK jobs data
GBP/USD struggles to build on Monday's gains and trades in the red below 1.2550 in the European session on Tuesday. The data from the UK showed that the Unemployment Rate edged higher to 4.3% in the three months to March as forecast, failing to help Pound Sterling find demand.
USD/JPY advances to 156.50 ahead of US Inflation and Japan’s Q1 GDP
USD/JPY rises to 156.50 with eyes on crucial US inflation readings. Investors expect that the fed will start lowering interest rates from September. Japan’s Q1 GDP will indicate the economic strength.
Gold price edges higher ahead of US PPI data, Fed’s Powell speech
The gold price (XAU/USD) rebounds despite the consolidation of the US Dollar (USD) on Tuesday. The upside of yellow metal might be limited as traders might wait on the sidelines ahead of key US inflation data this week.
Oil hovers around $79.50 amid concerns of supply disruptions following Canada’s wildfires
West Texas Intermediate crude Oil price trades around $79.50 per barrel during Tuesday's Asian session. These gains in Oil prices could be attributed to uncertainties surrounding crude Oil supply amid wildfires in remote western Canada.
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EUR/USD Yearly forecast
How could EUR/USD move this year? Our experts make a EUR/USD update forecasting the possible moves of the euro-dollar pair during the whole year. Don't miss our 2024 EUR/USD forecast!
EUR/USD FORECAST 2024
In the EURUSD 2024 Forecast, our analyst, Valeria Bednarik, anticipates gains for the next couple of months. The Eurozone economy would need to show steady signs of recovery to prevent EUR/USD from collapsing below 1.0390 in the year's second half. Read more details about the forecast.
The pair traded as low as 1.0447 and as high as 1.1275 throughout 2023, with currencies moving on sentiment.
MOST INFLUENTIAL POLITICAL EVENTS IN 2024 FOR EUR/USD
There is a note of color that would stand out in the upcoming months: the US 2024 presidential election that will take place on November 5. The contest nomination will start as soon as January and run until June. The pinch of drama comes from Donald Trump’s desire to represent Republicans once again. A potential second government of Donald Trump could mean higher inflationary pressures as Trump could reintroduce tariffs on imports and push against the agreements between China and the Biden administration.
Influential Institutions & People for the EUR/USD
The Euro US Dollar can be seriously affected by news or the decisions taken by two main central banks:
The European Central Bank (ECB)
The European Central Bank (ECB) is the central bank empowered to manage monetary policy for the Eurozone and maintain price stability, so that the euro’s purchasing power is not eroded by inflation. The ECB aims to ensure that the year-on-year increase in consumer prices is less than, but close to 2% over the medium term. Another of its tasks is one of controlling the money supply. The European Central Bank’s work is organized via the following decision-making bodies: the Executive Board, the Governing Council and the General Council. Christine Lagarde is the President of this organism.
ECB Official Website, on Twitter and YouTube
The Federal Reserve Bank (Fed)
On the other
FED Official Website, on Twitter and Facebook
Christine Lagarde
Christine Lagarde was born in 1956 in Paris, France. Graduated from Paris West University Nanterre La Défense and became President of the European Central Bank in November 1st 2019. Prior to that, she served as Chairman and Managing Director of the International Monetary Fund between 2011 and 2019. Lagarde previously held various senior ministerial posts in the Government of France: she was Minister of the Economy, Finance and Industry (2007–2011), Minister of Agriculture and Fishing (2007) and Minister of Commerce (2005–2007).
Lagarde on ECB'S Profile and Wikipedia
Jerome Powell
Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in February 2018, for a four-year term ending in February 2022. His term as a member of the Board of Governors will expire January 31, 2028. Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979. Powell served as an assistant secretary and as undersecretary of the Treasury under President George H.W. Bush. He also worked as a lawyer and investment banker in New York City. From 1997 through 2005, Powell was a partner at The Carlyle Group.
Jerome Powell Fed's Profile and Wikipedia
ECB NEWS & ANALYSIS
FED NEWS & ANALYSIS
About EUR/USD
The EUR/USD (or Euro Dollar) currency pair belongs to the group of 'Majors', a way to mention the most important pairs in the world. This group also includes the following currency pairs: GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The popularity is due to the fact that it gathers two main economies: the European and American (from United States of America) ones. This is a widely traded currency pair where the Euro is the base currency and the US Dollar is the counter currency. Since the EUR/USD pair consists of more than half of all the trading volume worldwide in the Forex Market, it is almost impossible for a gap to appear, let alone a consequent breakaway gap in the opposite direction.
Normally, it is very quiet during the Asian session because economic data that affects the fundamentals of those currencies is released in either the European or U.S. session. Once traders in Europe get to their desks a flurry of activity hits the tape as they start filling customer orders and jockey for positions. At noon activity slows down as traders step out for lunch and then picks back up again as the U.S. comes online. If there is important U.S. data we can expect quiet markets just ahead of the number. U.S. economic news have the ability to either reinforce an existing trend or reverse it depending on by how much it missed or beat expectations with the EUR/USD news. By 5:00 GMT liquidity leaves the market once again as European traders close out positions and head home.
Related pairs
GBP/USD
The GBP/USD (or Pound Dollar) currency pair belongs to the group of 'Majors', a way to mention the most important pairs worldwide. This group also includes the following currency pairs: EUR/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD and USD/CAD. The pair is also called 'The Cable', reffering to the first Transatlantic cable that was crossing the Atlantic Ocean in order to connect Great Britain with the United States of America. This term was originated in the mid-19th century and it makes GBP/USD one of the oldest currency pairs in the world.
The popularity of the Pound Dollar is due to the fact that represents two strong economies: British and American (from United States of America). The Cable is a widely observed and traded currency pair where the Pound is the base currency and the US Dollar is the counter currency. After the result of the Brexit referendum, where the majority of the British voted to abandon the European Union, GBP/USD has been suffering some turbulence in the Forex market as a consequence of the associated risks of leaving the single market.
USD/JPY
The USD/JPY (or US Dollar Japanese Yen) currency pair is one of the 'Majors', the most important pairs in the world. Japanese Yen has a low interest rate, normally used in carry trades, that's why is one of the most trades currencies worldwide. In the USD/JPY the US Dollar is the base currency and the Japanese Yen is the counter currency. The pair represents American (from United States of America) and Japanese economies.
Trading the USD/JPY currency pair is also known as trading the "ninja" or the "gopher", although this last name is more frequently used when reffered to the GBP/JPY currency pair. The US Dollar Japanese Yen usually has a positive correlation with the following two pairs: USD/CHF and USD/CAD. The nature of this correlation is dued to the fact that both currency pairs also use the US Dollar as the base currency, such as USD/JPY. The value of the pair tends to be affected when the two main central banks of each country, the Bank of Japan (BoJ) and the Federal Reserve Bank (Fed), face serious interest rate differential.