- EUR/USD retreats toward 1.0500 at the beginning of the week.
- Trump's comments and the risk-averse market atmosphere supports the USD.
- The US economic calendar will feature ISM Manufacturing PMI data for November.
EUR/USD struggles to build on the previous week's gains and declines toward 1.0500 in the European morning on Monday. The technical outlook points to a bearish tilt in the near term.
Euro PRICE Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.72% | 0.39% | 0.33% | 0.39% | 0.24% | 0.38% | 0.46% | |
| EUR | -0.72% | -0.36% | -0.38% | -0.31% | -0.38% | -0.32% | -0.22% | |
| GBP | -0.39% | 0.36% | -0.06% | 0.05% | -0.01% | 0.04% | 0.11% | |
| JPY | -0.33% | 0.38% | 0.06% | 0.06% | -0.04% | 0.09% | 0.08% | |
| CAD | -0.39% | 0.31% | -0.05% | -0.06% | 0.01% | -0.00% | 0.06% | |
| AUD | -0.24% | 0.38% | 0.00% | 0.04% | -0.01% | 0.05% | 0.10% | |
| NZD | -0.38% | 0.32% | -0.04% | -0.09% | 0.00% | -0.05% | 0.09% | |
| CHF | -0.46% | 0.22% | -0.11% | -0.08% | -0.06% | -0.10% | -0.09% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
The negative shift seen in risk mood and US President-elect Donald Trump's comments on BRICS help the US Dollar (USD) gather strength at the beginning of the week.
Over the weekend, Trump warned against BRICS nations trying to replace the USD with their own currency. "We require a commitment from these countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty US Dollar or, they will face 100% tariffs, and should expect to say goodbye to selling into the wonderful US economy," he said on X.
Meanwhile, US stock index futures were last seen losing above 0.2% on the day, reflecting the cautious market stance.
Later in the day, the ISM Manufacturing PMI data will be featured in the US economic docket. The headline PMI is forecast to edge higher to 47.5 in November from 46.5 in October. A reading above 50 could boost the USD and further weigh on the pair. On the other hand, a disappointing reading could hurt the USD with the immediate reaction. Nevertheless, EUR/USD's recovery attempts could remain limited unless the risk mood improves in the second half of the day.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart declined below 50 and EUR/USD closed the last three 4-hour candles below the 100-period Simple Moving Average (SMA), despite ending the week slightly above it.
On the downside, immediate support is located at 1.0500 (static level, round level) before 1.0440 (static level) and 1.0400 (static level, round level). Looking north, first resistance could be spotted at 1.0550 (100-period SMA) ahead of 1.0610 (static level) and 1.0660 (static level).
Euro FAQs
The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off 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 interest rates and manages monetary policy. The 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 rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic 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 significant, as they account for 75% of the Eurozone’s economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD extends losses toward 1.0500 as focus shifts to US ISM PMI
EUR/USD stays under bearish pressure and declines toward 1.0500 on Monday. The pair is dragged down by dovish ECB-speak, French political woes and a firmer US Dollar following Trump tariffs threat on BRICS. Investors now await US ISM Manufacturing PMI data.
GBP/USD stabilizes above 1.2700, struggles to gain traction
GBP/USD trades in negative territory, while managing to hold above 1.2700 on Monday. The pair's upside remains limited amid a pickup in the haven demand for the US Dollar, as traders remain wary over the latest Trump tariffs threat on BRICS nations. US ISM PMI is next in focus.
Gold stays below $2,650 on broad-based USD strength
Gold starts the new week on the back foot and trades below $2,650. The renewed US Dollar strength and the recover seen in the US Treasury bond yields don't allow the pair to stage a rebound as investors' focus shifts to US PMI data.
The week ahead: Payrolls take centre stage, as French government poised to collapse
At the start of this week, the focus is likely to be on France. On Sunday, Marine Le Pen said that her party’s talks with the government led by Michel Barnier, had broken down, which paves the way for a no-confidence vote in the technocratic government that has no majority in Parliament.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.