The euro/the US dollar is weakened, where the Federal Reserve supports the position of restricted monetary policy
- EUR/USD decreases to approximately 1,0450 with the passage of the US dollar after federal reserve officials have led that there is no need to make amendments to policy at least at the present time.
- Nagel warned of the European Central Bank that President Trump’s tariff will be more likely to Germany.
- FOMC investors are waiting for minutes, which will be released on Wednesday.
EUR/USD decreases to approximately 1,0450 in the North American session on Tuesday after failing to adhere to the 1.0500 psychological resistance in the last two days of trading. The main currency pair is declining due to some weakness in the euro (euro). The joint currency expectations are unconfirmed, as the European policy maker of the Central Bank (ECB) and the head of the Doni Bank Joachim Nagil warned that the US tariff (the United States) enables years.
In his speech at the Al -Ittihad International Club, Nagil said: “Our strong direction of export makes us at risk in particular.” He added that the economic output in 2027 will be approximately 1.5 % less than its previous expectations. Currently, Bondens Bondasan sees the German economy growing 0.2 % this year and 0.8 % in 2026.
Fears of customs tariffs escalated on Germany after US President Donald Trump announced during the weekend that he intends to impose a tariff on imported cars starting from April 2. According to the data of the Organization for Economic Cooperation and Development, the German economy exported 24.3 billion dollars to the United States in 2023.
Meanwhile, the company’s expectations that the European Central Bank will reduce interest rates three times this year, as well as the upper trend in the euro. European papers bets are based on increasing risk of inflation that lies behind the goal of the central bank of 2 %.
On the Economic Front, the Economic Persons Index in the eurozone ZEW is estimated at a moderate margin. Feelings data came on 24.2 in February, compared to the market expectations of 24.3. In January, data were seen at 18.0.
US dollar price today
The table below shows the percentage of change in the US dollar (USD) against the main currencies listed today. The US dollar was the strongest against the New Zealand dollar.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | 0.32 % | 0.21 % | 0.23 % | 0.14 % | 0.24 % | 0.69 % | 0.11 % | |
| euro | -0.32 % | -11 % | -08 % | -18 % | -08 % | 0.37 % | -0.21 % | |
| GBP | -0.21 % | 0.11 % | 0.04 % | -07 % | 0.04 % | 0.48 % | -0.10 % | |
| JPY | -0.23 % | 0.08 % | -04 % | -11 % | -01 % | 0.42 % | -0.14 % | |
| CAD | -0.14 % | 0.18 % | 0.07 % | 0.11 % | 0.10 % | 0.56 % | -0.03 % | |
| Aud | -0.24 % | 0.08 % | -04 % | 0.00 % | -0.10 % | 0.44 % | -0.15 % | |
| Nzd | -69 % | -37 % | -0.48 % | -0.42 % | -56 % | -0.44 % | -58 % | |
| Chf | -11 % | 0.21 % | 0.10 % | 0.14 % | 0.03 % | 0.15 % | 0.58 % |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is chosen from the left column, while the quotation currency is chosen from the top row. For example, if you choose the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage offered in the box will represent the USD (base)/JPY (quote).
Digest Market Mark: EUR/USD corrects taking into account the Trump tariff for the German economic view
- The correction step in the EUR/USD pair is also driven by a USD dollar recovery movement (USD). The US dollar index (DXY), which tracks the value of Greenback for six main currencies, rises after attracting bids near its lowest level for two months and recovering to approximately 107.00 at the time of the press.
- Greenback discovers the purchase of benefits as investors expect the Federal Reserve (FERED) to keep interest rates in the current range of 4.25 % -4.50 % for a longer period. On Monday, a large number of federal reserve officials stated that monetary policy does not need to be modified in the current scenario.
- Federal Reserve Governor Michel Bowman said in her prepared statements at the American Bankers Association conference that she wants to get “greater confidence” that progress in reducing inflation will continue “as we think about making more modifications. Bowman added that a fixed position for the interest rate now provides the opportunity to review more From “indicators of economic activity” and obtaining more clarity on “management policies and its effects on the economy.”
- Meanwhile, Patrick Harker, President of Philadelphia, said that there are “sufficient reasons” to maintain “policy price fixed at the present time”, such as flexible economic growth, balanced labor market, and still relevant inflationary pressures. Harker did not abide by the time frame, but he was optimistic that inflation would reduce time.
- For more references on monetary policy forecasts, investors will focus on the minutes of the FOOC Open Market Committee (FOMC) from the January Policy meeting, which will be issued on Wednesday. At the policy meeting, the Federal Reserve announced a cessation of the monetary mitigation course, which started in September. Federal Reserve Chairman Jerome Powell led the monetary policy modifications to be appropriate only when officials see “real progress in inflation or at least some weakness in the labor market.”
Technical Analysis: The euro/the US dollar returns from 1.0500
EUR/USD is located after facing the resistance near the psychological obstacle of 1.0500. However, the expectations of the main currency pair are still optimistic that they exceed the Si -moving average for 50 days (EMA), which is about 1,0430.
The relative strength index is struggling for 14 days (RSI) to break above 60.00. The bullish momentum will be activated if RSI (14) can maintain higher than this level.
Looking down, the February 10 level of 1.0285 will serve as the main support area of ​​the husband. On the contrary, the highest level on December 6 of 1.0630 will be the main barrier of euro bulls.
