- The euro/the US dollar gained 0.8 % on Tuesday with the transformation of virtual commercial wars.
- The introductory deception of President Trump was called by the markets after several delay.
- European economic data is still thin this week.
The euro/the US dollar increased by eight percent higher on Tuesday, and the lost land was regained, but the failure to restore the handle of 1.0400. The fibers picked up a six -day loss chain, but the bullish momentum in general is still high with the euro at the mercy of the total market flows and salary salaries looming on the horizon (NFP).
The euro/the US dollar early in the week is about 1,0200, it ignited the imminent tariff from US President Donald Trump, firmly after the Trump administration has taken any excuse that you could find to avoid its self -imposed threats to impose taxes on its citizens to import goods from other countries . 10 % flat import tax threats on European produced goods remain on cards, but at the last minute axes in concessions on all countries targeted by President Trump, with the exception of China, investors have abandoned that attitudes are simply and nothing more. Import fees are still 10 % on goods from China on the table, but President Trump has also failed to pursue his dual definitions arbitrarily on any country that decreases.
Thanks to this, the 10 % Chinese revenge definitions on the goods made by the United States are a largely theatrical gesture; Very few goods made by the United States make it abroad to Chinese market, and often step as symbolic. Investors are now controlling most of the commercial rhetoric of President Trump, as the US administration hides its own preparation, and the threats of future tariffs are likely to have silent implications with the pricing of future concessions early.
ADP employment change data in the United States was set on Wednesday; However, this wrong number is not expected to generate a big movement. In addition, the report of the USMI Service Manager (PMI) is expected to be for the month of January, as expectations indicate an altitude from 54.1 to 54.3. The most important US data point this week will be the non -cultivated salary statements on Friday, which is expected to decrease from 256 thousand to 170 thousand.
Euro/dollar price expectations
EUR/USD has found enough juice to stop the rear collapse for six days, but the pair is still on the wrong side of the handle of 1.0400 and the average alphabet for 50 days (EMA) at 1.0440. The bullish momentum of technical oscillators has faded, and the movement of fiber prices is determined for a side milling between 1.0500 and 1.0300.
The euro graph/daily dollar
Common questions euro
The euro is the currency of the 19 European Union countries belonging to the eurozone. It is the second most traded currency in the world behind the US dollar. In 2022, it represented 31 % of all foreign exchange transactions, with an average daily rotation of more than $ 2.2 trillion per day. EUR/USD is the most trading currency pair in the world, which represents an estimated 30 % of all transactions, followed by EUR/JPY (4 %), EUR/GBP (3 %) and EUR/AUD (2 %).
The European Central Bank (ECB) in Frankfurt, Germany, is the backup bank. The European Central Bank sets interest rates and runs monetary policy. The primary mandate in the European Central Bank is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary performance is to raise or reduce interest rates. Relatively high interest rates – or expect higher rates – usually benefit from the euro and vice versa. The Board of Directors of the European Central Bank is making monetary policy decisions at eight times a year. Decisions are made by the heads of national banks in the eurozone and six permanent members, including the President of the European Central Bank, Christine Lagarde.
The inflation data in the euro area, measured by a coordinated index of consumer prices (HICP), is an important economist for the euro. If inflation increases more than expected, especially if it is 2 % higher than the European Central Bank’s goal, then the European Central Bank is obliged to raise interest rates to return it in control. Relatively high interest rates usually benefit compared to its euro counterparts, as it makes the region more attractive as a place for global investors to stop their money.
Data ejaculates a measurement of economics health and can affect the euro. Indicators such as GDP, manufacturing, PMIS, employment services, and consumer morale surveys can affect the trend of uniform currency. The strong economy is useful for the euro. Not only is to attract more foreign investment, but the European Central Bank may encourage interest rates, which will enhance the euro directly. Otherwise, if economic data is weak, the euro is likely to decrease. Economic data of the four economies in the eurozone (Germany, France, Italy and Spain) are of particular importance, because it represents 75 % of the eurozone economy.
Other important version of the euro is the commercial balance. This indicator measures the difference between what a country gains from its exports and what it spends on imports during a certain period. If a country produces very absolute after exports, its currency will obtain a purely value of the additional demand created from foreign buyers who seek to buy these goods. Therefore, the positive and positive trade balance enhances the currency and vice versa to achieve a negative balance.
